RIO - Rio Tinto

[zarfius]

I understand that 21 for 40 is only the ratio and that it's the resultant fraction that gets rounded down.
But happy to be corrected on that. Has anyone received an entitlement from holding less than 40 shares? Bearing in mind that the first posting only went out on 16 June for those " on record" at 11 June.

This appears on page 6 of the Offer Document available on Etrade:

"Whilst the Rio Tinto Limited Rights Issue is being made at an offer ratio of 21 New Rio Tinto Limited Shares for every 40 Rio Tinto Limited Shares held, there is no minimum holding of Rio Tinto Limited Shares required for you to participate in the Rio Tinto Limited Rights Issue, subject to the rounding provisions described below."

 

[bennib0i]

Has anyone received an entitlement from holding less than 40 shares? Bearing in mind that the first posting only went out on 16 June for those " on record" at 11 June.

Hi all, my parents sold alot of their rio shares during the year and only had 27 left.....dunno why..but anyway they have held these 27 shares since the start of the year and got a letter offering 14 new rio shares.

That answers your question in that the offer rounded down from 14.1 shares to 14.

My parents are very confused on what to do. From what others have said in this tread: is the best and simplest option just to pay the $28.29 to rio via the entitlement letter? or is there a better alternative?

Thx, Ben.

 

[oldblue]

Hi all, my parents sold alot of their rio shares during the year and only had 27 left.....dunno why..but anyway they have held these 27 shares since the start of the year and got a letter offering 14 new rio shares.

That answers your question in that the offer rounded down from 14.1 shares to 14.

My parents are very confused on what to do. From what others have said in this tread: is the best and simplest option just to pay the $28.29 to rio via the entitlement letter? or is there a better alternative?

Thx, Ben.

We're not allowed to give advice on this forum but if it was me I'd think that the brokerage on the sale of 14 rights would take too big a chunk of the proceeds.
So I'd take up the shares because I think the company has good future prospects. If I could afford it I'd seriously consider buying a few more rights but if so would need to move fairly sharply as rights trading ends on 24 June.

 

[bonkerrs]

We're not allowed to give advice on this forum but if it was me I'd think that the brokerage on the sale of 14 rights would take too big a chunk of the proceeds.
So I'd take up the shares because I think the company has good future prospects. If I could afford it I'd seriously consider buying a few more rights but if so would need to move fairly sharply as rights trading ends on 24 June.

WHAT!! I have to buy more rights ($28.29/share) if I want more then my allocated amount?! Sorry, I haven't really taken much interest in the recent discussion.

I definitely want more then my allocated allotment... thought I could do this through applying with the BPay method when I take up my entitlement.

Do I need to buy the rights as what has been discussed here ie: RIOR?

 

[skyQuake]

We're not allowed to give advice on this forum but if it was me I'd think that the brokerage on the sale of 14 rights would take too big a chunk of the proceeds.
So I'd take up the shares because I think the company has good future prospects. If I could afford it I'd seriously consider buying a few more rights but if so would need to move fairly sharply as rights trading ends on 24 June.

I think the RIO offer stated that you can convert your rights to full share by paying 28.29 to rio and you will get your shares without paying brokerage.

 

[JAS81]

WHAT!! I have to buy more rights ($28.29/share) if I want more then my allocated amount?! Sorry, I haven't really taken much interest in the recent discussion.

I definitely want more then my allocated allotment... thought I could do this through applying with the BPay method when I take up my entitlement.

Do I need to buy the rights as what has been discussed here ie: RIOR?

The RIOR price has been tracking the RIO (XR).... so unless that changes it doesnt make much sense to me to buy the rights as you will have to go through the hassel of applying for them, when you could just buy the end result for the same cost.. Unless im missing something??

if you bpay more than your entitlment they will refund you without inetrest..

^^^ so you get free brokerage if you buy the RIOR rights? is that the difference?

 

[bonkerrs]

The RIOR price has been tracking the RIO (XR).... so unless that changes it doesnt make much sense to me to buy the rights as you will have to go through the hassel of applying for them, when you could just buy the end result for the same cost!! Unless im missing something??

if you bpay more than your entitlment they will refund you without inetrest..

Playing catch up now with the recent discussion.

Just called RIO and was told: to get more rights then my entitlement I have to buy it on the market (RIOR). Cannot apply for it.

Have to buy the rights (RIOR closed at 24.42) at market price then buy the shares (RIO) by paying $28.29 on top of the price of the rights. So you're basically paying $52.71 per share. However, RIO is trading at $52.64 (close price). Buy outright shares.

BTW, in regards to rights (RIOR) - who do you pay the 28.29 to?

 

[JAS81]

Playing catch up now with the recent discussion.

Just called RIO and was told: to get more rights then my entitlement I have to buy it on the market (RIOR). Cannot apply for it.

Have to buy the rights (RIOR closed at 24.42) at market price then buy the shares (RIO) by paying $28.29 on top of the price of the rights. So you're basically paying $52.71 per share. However, RIO is trading at $52.64 (close price). Buy outright shares.

BTW, in regards to rights (RIOR) - who do you pay the 28.29 to?

That bit you pay to RIO - i.e. bpay... either or - I would have been better off selling my Rio shares prior to 12 june and avoiding the share offer. live and learn I guess.

 

[zarfius]

What's likely to happen if you do nothing and let the offer lapse?

Would the price of RIO go back up to the $75 mark or would you get some sort of compensation?

 

[JAS81]

What's likely to happen if you do nothing and let the offer lapse?

Would the price of RIO go back up to the $75 mark or would you get some sort of compensation?

if you let your rights lapse then the get sold on the market and you may get some money for them. Its discussed in the offer document which can be accessed on RIO's website.

 

[hoggy]

Hi everyone

Ok, so I'm a complete novice with the stock market. I purchased 86 shares of Rio Tinto on the 17th June for $57.9? I spent roughly 5k. Can someone please tell me if I have made a huge mistake. I saw the stock fall by 20% and though "hey why not buy" however I had no idea of this dilution of share prices. Im only 18 yrs old and bought these during uni exam period (wasn't the greatest idea in hindsight). I am not asking for financial advice as I know this is illegal but was this a good or extremely bad move in your opinion? Should I keep these stocks (will they go back up - if so please take a guess when) or should I sell them immediately? Please laugh on my account everyone, I am a complete newbie

 

[drsmith]

Please laugh on my account everyone, I am a complete newbie

They will go up when the price starts to rise.

Laughing over the best forecast I can offer is to say RIO will still be around (in some form or another) long after you have finished your degree.

 

[andione1983]

Dr Smith i like your pic...

are you going to tell me im a bubble headed boobie?..........


and ion the RIO front, i think they will go back up too , i would just be patient. no point selling them now.

 

[oldblue]

No need to laugh at anyone, hoggy.


RIO shares adjusted for the fact that they no longer had the rights attached to buy the new issue at $28.29.
You'll note that the "old" shares are now selling for roughly the sum of the price that the rights are trading at, plus the $28.29 that holders of the rights need to pay to the company.

No guesses on what the price might do from day to day but RIO shares are a good investment, IMO.

 

[VViCKiD]

Has anyone received their share entitlement form in the mail yet ? I still haven't received mine ... i don't want to miss this ..

 

[FNQTrader]

you don't necessarily have to wait to receive your letter to do anything with the rights - you can log in and download an electronic copy of the offer letter - specific to your holding and go from there - i.e if you just bought and are worried about running out of time once the T+3 completes - waiting for the mail to come - you can get the documents electronically and save yourself a couple of days. Am finding out the detail on this (my Dad did this the other day (with his RIO holdings) and i've asked him for the details) and I will put it up unless someone else who knows puts it up beforehand.

Edit: - don't have the full detail yet - but looks like you log in via the Rio Tinto site itself using your HIN number

 

[JAS81]

you don't necessarily have to wait to receive your letter to do anything with the rights - you can log in and download an electronic copy of the offer letter - specific to your holding and go from there - i.e if you just bought and are worried about running out of time once the T+3 completes - waiting for the mail to come - you can get the documents electronically and save yourself a couple of days. Am finding out the detail on this (my Dad did this the other day (with his RIO holdings) and i've asked him for the details) and I will put it up unless someone else who knows puts it up beforehand.

Edit: - don't have the full detail yet - but looks like you log in via the Rio Tinto site itself using your HIN number

If you want the forms - just get them here:

http://www.riotinto.com/rightsissue/ENG/investors/722_rio_tinto_limited.asp

once in computershare go to holding statements and click on the download pdf.

 

[bonkerrs]

Like oldblue said in an earlier post and on a couple of different RIO docs. They are doing 2 mail outs for the forms...

16 June 2009
Dispatch of the Rio Tinto Limited Entitlement and Acceptance Forms and related materials to Rio Tinto Limited Shareholders as at the Rio Tinto Limited

26 June 2009
Second posting of Rio Tinto Limited Entitlement and Acceptance Forms and (where applicable) the Australian Offer Document to Qualifying Rio Tinto Limited Shareholders (where required) completed(1)

The above dates were from here: http://www.riotinto.com/rightsissue/ENG/investors/722_rio_tinto_limited.asp

 

[zarfius]

Hi everyone

Ok, so I'm a complete novice with the stock market. I purchased 86 shares of Rio Tinto on the 17th June for $57.9? I spent roughly 5k. Can someone please tell me if I have made a huge mistake. I saw the stock fall by 20% and though "hey why not buy" however I had no idea of this dilution of share prices. Im only 18 yrs old and bought these during uni exam period (wasn't the greatest idea in hindsight). I am not asking for financial advice as I know this is illegal but was this a good or extremely bad move in your opinion? Should I keep these stocks (will they go back up - if so please take a guess when) or should I sell them immediately? Please laugh on my account everyone, I am a complete newbie

I'm sure many of us have similar stories from when we first started getting into the stock market

There's no way to know "for sure" what stocks are going to to in the future, however, there are a few things working in your favor.

Firstly, RIO is a big company that has been around for a long time and has lots of liquidity (many people buy and sell shares everyday).

What this means for you is that you can say with a fair amount of certainty that RIO won't be going out of business anytime soon.

The other factor is that the market is still fairly low relative to the crash in november and march. If history tells us anything it's that the market will recover and big companies like RIO will be apart of that rise.

The real question you need to ask yourself is, how long can you wait? If you have nothing better to do with the money then having it invested seems like a good idea at this point in time.

Of course, this is just my opinion.

P.S. The only thing laughable about your post is that you think we can predict when it will go back up. You guess is as good as ours lol :

 

[blanker]

Today's RIO price is just terrible.....

Thinking of buying more to bring average share price down a little, but big investment for small gain. I didn't expect such a drop.