RIO - Rio Tinto

[CoffeeKing]

Found this from another link in the forum...

Rio rocked by metal meltdown

http://www.news.com.au/business/story/0,27753,24919886-462,00.html

Lot of money being lost maybe from low metal prices, alum seems one

 

[Tukker]

Can Someone please tell me the highest high for today 30th Jan? I got stopped out at 42.83, and neither of my broker platforms show it going higher than 41.53

Appreciate it.

 

[Tukker]

Well i got stopped out in the last 3 mins of trading when someone dropped a few million into Rio and bought out the entire lower half board. What good are end of day systems in times like these?..... My 10th stop out in a row now with some crazy slippage.... *Rubs Behind* when will it end

 

[noirua]

RIO are still plugging away at selling assets to play down debt and should be admired for keeping their word without excuses.
Getting away the Corumba iron ore assets for US$1.6 billion to Vale may be better than it looks when the RIO share price fall is compared.
Worth watching events here.

 

[Tukker]

I got a short signal from 2 of my systems today for RIO, and it's up 10% in London , considering my trading systems have stopped me out every time for the past 2 weeks I'm guessing this is very good news for Rio holders

When are Rio's financial s comming out?


Tukker

 

[Garpal Gumnut]

RIO seems to have been giving some very good signals on a 15d simple moving average and is now trending up.

Interesting times.

gg

 

[noirua]

RIO seems to have been giving some very good signals on a 15d simple moving average and is now trending up.

Interesting times.

gg

Quite a powerful move by RIO and may give some a chance to bailout in coming weeks. Would take a lot to reach that $65 - $85 trading range, that came after a previous long downturn.
Still interesting to watch with the Chinese never that far away from the action.

 

[vincent191]

I don't understand why ROI is selling assets instead of a rights issue to pay down debt.

ROI claims it is selling "underperforming assets" but are the Chinese stupid to buy underperforming assets??

How can shareholders know that ROI is not selling it's good assets at give away prices? What is under performing may become performance stars when the markets recover.

At least with a rights issue shareholders will suffer a dilution but they are given the opportunity to buy-in at a discount.

The only reason I can see is an asset sale will not necessary drop the share price and therefore will not effect the bonus calaculations as much as a rights issue.

Am I way off the mark with my assumptions???

 

[noirua]

I don't understand why ROI is selling assets instead of a rights issue to pay down debt.

ROI claims it is selling "underperforming assets" but are the Chinese stupid to buy underperforming assets??

How can shareholders know that ROI is not selling it's good assets at give away prices? What is under performing may become performance stars when the markets recover.

At least with a rights issue shareholders will suffer a dilution but they are given the opportunity to buy-in at a discount.

The only reason I can see is an asset sale will not necessary drop the share price and therefore will not effect the bonus calaculations as much as a rights issue.

Am I way off the mark with my assumptions???

They may have to talk to major holders about a rights issue and get their agreement, as they may not have the cash. Xstrata are having big problems over their rights issue.

 

[oldblue]

Obviously the Chairman-elect shared some of these concerns and in the end decided to walk so that the rest of the board could get on with things.
I guess we'll never know what would have been the best course of action.

 

[vincent191]

Noiru....that is why we have underwriters, in case the institutions don't take up the entire rights issue the underwriters will have to fill in the "void".

Oldblue....i guess you are right...we will never know. But the newspapers are still talking about a possible rights issue.

 

[drsmith]

One potential problem with a rights issue could be the scale required for a long term solution to RIO's debt. $5bn or so may only not be enough in the long haul.

Press speculation suggests any assets/equity deal with Chinalco could be worth around $30bn.

 

[oldblue]

Not just the size of any issue is in question but also the degree of discount needed to " get it away".
Underwriters should be able to be found but the fee involved may be pretty steep, particularly if the issue price is too finely priced.

Who was it said " Life wasn't meant to be easy" ?

 

[andione1983]

i got few grand a month or so ago at $38 a share, what should i do? sell up at 50???? or hang on and see where they go?

P.s. By the way what are Rios returns? and dividends like?

 

[Joe Blow]

i got few grand a month or so ago at $38 a share, what should i do? sell up at 50???? or hang on and see where they go?

Hi Andi,

Just so you know, nobody here can offer you buy or sell advice on particular stocks. Only licensed financial advisors can provide this kind of specific financial advice.

If you are trying to figure out whether to hold or sell I would consider why you bought the shares in the first place and what you hoped to achieve. Are you looking to the short or long term? I'm sure that by considering these kind of questions, and by doing your own research, you will have a much better idea of how long you want to hang onto your RIO shares.

All the best!

 

[noirua]

Noiru....that is why we have underwriters, in case the institutions don't take up the entire rights issue the underwriters will have to fill in the "void".

Oldblue....i guess you are right...we will never know. But the newspapers are still talking about a possible rights issue.

If a substantial holder states they may not be in a position to take their rights, then underwriters are unlikely, in these markets, to go near it. Also, if substantial holders vote against it the rights issue could flounder anyway. RIO would have to get the substantial holders onside before going forward with a rights for about US$10 billion or more.

 

[noirua]

RIO are now in a trading halt as they finalize their sales to China of interests in mines in a complex bond exercise.

 

[Ghetto23]

Do we think that the SP is going to go up or down after the trading halt is lifted?

I haven't had good experiences with trading halts of late...

 

[Largesse]

i guess you need to figure out which is going to have more of an effect on the price

a monster capital raising (at an inevitably large discount) vs a monster reduction in debt as a result of asset sales.

consider that they are selling off a large portion of their future earning potential aswell....

 

[sammy84]

Do we think that the SP is going to go up or down after the trading halt is lifted?

I haven't had good experiences with trading halts of late...

I gather from the share price run up RIO had in the last few days, that many consider this good news.