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RIO - Rio Tinto

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I reckon it will come good. Market is in a bit of a pullback phase at the mo' which is compounding the issue. But look at all the other quality outifts that have done cap (in hand) raisings in the last couple of months, there SP has bounced back pretty nicely. BSL is one that springs to mind. My theory is that the when it gets a good take up the company comes out of it in a better position with less debt and stronger. As a play you need to be able to ride out the bumps for a few weeks I reckon.
 
surfziggy said:
look at all the other quality outifts that have done cap (in hand) raisings in the last couple of months
Click to expand...

STO perhaps? I don't know how similar the actual capital raising was to RIO but the chart certainly looks similar back in the middle of may to what RIO's chart looks like today.
 
Fair point, surfziggy.

The point about many of these capital raisings is that although/because they have been done at a substantial discount they have been a success and have restored the company's financial position.

TSE, NPX and CSR are other examples.

The merits of RIO as an investment aren't determined by a few days' trading but it's not a stock I would buy in expectation of a quick killing.

 
I see good buying volume coming in over the last three days but it keeps going down.

Bit surprised how it took off this morning then fell 90c or so from the high. I call it irrational exuberance on market open and it sucks a lot of people in, inc me today then the fade comes in. I need patience.

If the market holds it will go up slowly.

If the market goes down it will trickle down slowly provided no more bad news comes out

If good news comes in and the market moves forward then watch out above.

Great company, great assets but bit of debt. Hasn't seemed to have stopped people from buying it.

Since announcement

day 1 fall 21%
day 2 fall 9%
day 3 fall 3.4%
day 4 ?

Have to abide by stop loss on this one. Who knows where it will go short term. Its book value is poor compared to BHP.


There was an exhaustion selling gap coming in yesterday and it looked as though today would bottom but not sure now.

The 61.8% Fib retracement level is $48.64. If it goes below this then in fibonacci speak it will continue its down trend.
 

How do you know that wasn't a continuation gap?
Day 1 actually went down 0.13% adjusted for rights.
Also the fibs are all screwed up now, and some gaps plays too because of the rights adjustment. Some ppl will use the rights adjusted price, and some will not.

The massive downtick in the CSPA may be indicative that the short term big seller is over.

Cheers
 
Well, just closed at a day low today at $50.72, IMO this one is starting to look very attractive at this price and agree with others on it being exacerbated lately, it's just selling compounding the fear of more selling. All throughout this bear-market for the past couple years, a series of severe falls have often been followed by some very nice, short and sharp rebounds... so looking to get in very soon, maybe even on Monday.

From a charting/technical perspective, it broke out of the trading channel/uptrend that has formed over the past 6 months, but I am picking a bit of a bottom here at around this price range, $50 price has proven to be a good area of resistance/support in the past 6 months. If that breaks, next stop $45, and that looks even more solid. Personally I think it's worth a bit of a punt... Anyone else?
 

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Agree skyQuake, but a lot of other previous capital raising have been pretty successful (as others have mentioned); typically most stocks sell off in the day(s) after the capital raisings and eventually rebound. I'm talking more about a short-term rebound trade for some quick money, not a longer-term trend. Most likely, though, a lot of the sellers have gotten out now and price should rebound a little as others 'bargain-hunt'. I'll be betting on it
 
given it was trading at over $70 before the announcement of the rights issue - and there hasn't really been that much bad out there to justify a $20 fall if you exclude the drop on going ex-rights - it is pretty well oversold for mine.

next week will be interesting - but i'm going to have to hang on for a bit yet given i came in a bit late.............
 

Yup, sure a lot of the others have been successful, but RIO is somewhat different. All the other cap raisings were like this: Halt, record date, announcement, lift halt. This did not give anyone the opportunity to participate that was not already a holder. The RIO offer gave people time to jump in to snag the 'cheap shares'.
Don't forget how well it went on the ex-date, closed down only a tiny bit while BHP and all the other miners tanked.
In a way, it was similar to the BSL cap raising. Up hard, then straight down.

There would be quite a few bargain hunters looking at it though, looking for a cheap re-entry into a fave.
 
Hi All
Just want to clear some things. My daughter holds 20 shares in rio and got the letter saying she can buy 10 rights @ 28.29. She is going to do that. So that is all she has to pay? and on the 10th July she will have effectively 30 rio shares @ what ever they are trading for?

Now I can the rights are roughly $20 at the end of days trade, but still have to pay the other 28.29 in a few weeks.
 
yep, she can just do a bpay ($282.90) without worrying about mailing anything out, or send form and payment. and yep, 30 shares at market price.
 
zippy69 said:
Now I can the rights are roughly $20 at the end of days trade, but still have to pay the other 28.29 in a few weeks.
Click to expand...
yes that right. rights (rior) closed at 22.60 today. not sure when to pay 28.29 to rio?! could just buy the shares outright - cheaper at the moment!
 
bonkerrs said:
yes that right. rights (rior) closed at 22.60 today. not sure when to pay 28.29 to rio?! could just buy the shares outright - cheaper at the moment!
Click to expand...

Thanks, that was what i thought, but just wanted to make sure i had it right. Will hold out till later in the week and see what happens to both prices
Thanks again
 
andione1983 said:
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.
Click to expand...
I found the character he portrayed in the first season much more interesting than that of the second and third seasons.

As for robot insults there's quiet a choice.
http://www.geocities.com/sunsetstrip/towers/3332/smith.html

Back on topic if hoggy hangs on for the long term he should indeed have the last laugh.
 
Hi everyone
Being a shareholder of RIO with 100 shares that I bought last year I am very confused of what the new rights is all about.

Can someone please explain to me what this new rights is about and also what i need to do with the share rights offer.

I received the rights offer today, and although it comes with lots of information it is telling me I have a right to sell or buy the rights. Not sure what this means to me.

Also, it says if you do nothing by the 1st July, your shares will be diluted. What does that mean? Does this mean they will sell my current 100 RIO shares at market price after 1st July?

If I pay for the 51 new shares, would that be added to my existing 100 ordinary RIO shares?

I am very confused and need help!
thanks.
Bobby
 
bobby24 said:
If I pay for the 51 new shares, would that be added to my existing 100 ordinary RIO shares?
Bobby
Click to expand...
Yes that would be added to your existing 100 shares.

Pages 3 to 16 of the offer document should answer the other questions above.
 
all RIO seem to have done in this phase of tapping the market is confuse the hell out of people i wonder if they know how it works themselves
 
zarfius said:
I tried doing this but the form doesn't seem to be there for me. I should definitly be entitled because I bought my shares on 12 June.

Is anyone else having issues with this?
Click to expand...

Yes, it is confusing but RIO are working the entitlements in two chunks.
The record date for the first posting of entitlement letters was 11 June so anyone not on the register at that date but buying before the shares went ex rights will be included in the "second posting".
The record date for the second posting is 22 June and the entitlement letters are due to be posted on 26 June. This doesn't leave a lot of time before the issue closes on 1 July. I imagine that the forms may be accessible electronically before 26 June.

The thing to watch for anyone wanting to sell their rights is that rights trading ends on 24 June. Talk to your broker about this if you don't have the forms.
 
What happens if I buy additional shares in RIO on Monday, 22nd June, as I am an existing RIO Shares holder and have already received the first Rights issue?

As long as I buy before close on Monday 22nd June will I be entitled to additional rights shares for this particular purchase?

Many thanks for help with this interesting situation.

Paul

 
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