RIO - Rio Tinto

[Frank D]

RIO TINTO:- Technical Analysis

Since the March lows there was an expectation that RIO was heading
back towards the Yearly 50% level @ 75.29.

Once it completed the move into the Yearly 50% level (Stock Report) it
was time to exit any longs and wait until the 3rd Quarter forms.

The Yearly 50% level can act as resistance, which is also part of
the breakout pattern in 2008:- retest the break and 50% level in the
new year:- 2009

The trend of RIO will be defined by the 3rd Quarter 50% level, as was
the case in 2008.

We have two plays on RIO for the rest of 2009….

3rd Quarter UP move towards $94.00

or a down move towards the lower levels and 2009 lows over the next
3-months

A move down into the Yearly lows is part of the Primary Trend breakout
from 2008.

Breakout:- reversal into the Yearly 50% level and then a
rejection pattern away from the Yearly 50% level towards new lows over
the next 2 Quarters.

Two weeks to go until the 3rd Quarter begins and it's simply a matter of trading on the side of the 3rd Quarter 50% level.

 

[oldblue]

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

The answer's an emphatic "NO"!

The shares have long gone ex rights. If you want more you have to buy the rights ( and pay another $29.29 to the company ) but the ex rights shares are selling for about that total price anyway.

 

[oldblue]

The answer's an emphatic "NO"!

The shares have long gone ex rights. If you want more you have to buy the rights ( and pay another $29.29 to the company ) but the ex rights shares are selling for about that total price anyway.

This should read " and pay another $28.29 to the company."



My mistake. Sorry for that.

 

[Nero64]

The answer's an emphatic "NO"!

So if you bought RIO below $50 or $40 before the ex date then your getting an awesome deal and a good discount.

If you bought above ex before $60 and $70 then it is some consolation.

If you're buying now then your hoping for a bottom and there is no point in buying RIOR because it is trading near RIO anyway (actually there is a small discount)

I think the share issue would've been better 1 month earlier when the US market was peaking, now it is slowly trickling blood in a weak time of the year. Rio needs to bottom in trending up market not a overbought rally which is showing signs of reversing.

 

[oldblue]

My emphatic "No" wasn't to be taken as a vote against buying RIO at today's prices. I don't have a firm view on that except to say that we probably need to see how RIO trades once the issue is out of the way.

My "No" was in answer to the question about whether or not buying head shares last Friday would entitle the buyer to more rights.

 

[Lert]

Has anyone in Perth got their RIO paperwork yet?.. I would have thought being posted on the 16th it should have been here by now..

 

[JAS81]

Has anyone in Perth got their RIO paperwork yet?.. I would have thought being posted on the 16th it should have been here by now..

You dont need to wait for the post to arrive.

Get your personalised offer letter here:

https://www-au.computershare.com/Investor/Security/Summary.asp

 

[zarfius]

This thread has been a bit quiet for the last few days. What's going on guys?

I logged into Etrade this morning and I have 12 RIOR sitting in my portfolio with cost basis of 0.00

I still haven't received the letter in the mail and when I checked a few days ago I couldn't get the online version either. I assume I'll get the letter after the second mailout on the 26th.

I've had a pretty big paper loss on this so far since I purchased 24 RIO for 77.86 on 12 June. It's been pretty confusing trying to work out where I stand but as far as I can tell, I'd be about $450 down if I sold all my shares and rights today.

On the other hand if I take up my rights and purchase the 12 shares for 28.29 my average cost would be 61.33 per share (36 shares for a total cost of $2208)

It'll be interesting to see how long before RIO reaches my break even point. Does anyone else have an opinion on this?

 

[oldblue]

This thread has been a bit quiet for the last few days. What's going on guys?

I logged into Etrade this morning and I have 12 RIOR sitting in my portfolio with cost basis of 0.00

I still haven't received the letter in the mail and when I checked a few days ago I couldn't get the online version either. I assume I'll get the letter after the second mailout on the 26th.

I've had a pretty big paper loss on this so far since I purchased 24 RIO for 77.86 on 12 June. It's been pretty confusing trying to work out where I stand but as far as I can tell, I'd be about $450 down if I sold all my shares and rights today.

On the other hand if I take up my rights and purchase the 12 shares for 28.29 my average cost would be 61.33 per share (36 shares for a total cost of $2208)

It'll be interesting to see how long before RIO reaches my break even point. Does anyone else have an opinion on this?

Any opinions on how long it might take the RIO SP to reach your breakeven point of $61.33 would be pure guesses.
For what it's worth, I reckon that RIO at today's levels will prove to be a good investment now that the debt problem appears to be under control. Probably not as good as BHP but that's just IMO.

 

[zarfius]

Any opinions on how long it might take the RIO SP to reach your breakeven point of $61.33 would be pure guesses.
For what it's worth, I reckon that RIO at today's levels will prove to be a good investment now that the debt problem appears to be under control. Probably not as good as BHP but that's just IMO.

To be honest I wasn't really asking anything in particular. I just wanted to share my thoughts and see if anyone is still paying attention.

I also feel that RIO is a decent long term investment at these levels, although that wasn't my intention when I bought. Normally I have a system that I follow for holding or cutting losses. However, this situation doesn't seem to fit my normal strategy and I can't make up my mind yet.

 

[oldblue]

To be honest I wasn't really asking anything in particular. I just wanted to share my thoughts and see if anyone is still paying attention.

I also feel that RIO is a decent long term investment at these levels, although that wasn't my intention when I bought. Normally I have a system that I follow for holding or cutting losses. However, this situation doesn't seem to fit my normal strategy and I can't make up my mind yet.

I'd hate to tell you how many times my short term trades have become long term investments!
I now try to follow a strict rule of letting my profits run and cutting my losses quickly, unless it's a share that I've consciously bought as part of my longterm portfolio. That's still the hardest part, isn't it? - there's always the temptation to leave things alone in the hope that they'll come right.
Looking at things in a positive light, RIO is a share that I'd be happy buying for my longterm portfolio if I had the necessary funds.

 

[andygunn]

Hi... I am following the right issue of RIO... will it affect somebody who does not have any share with RIO before, to buy one now? the share that I am talking about is not RIOR, but it is RIO... because I found the price is quite low currently and there is huge chance it will increase in the future...

 

[zarfius]

Hi... I am following the right issue of RIO... will it affect somebody who does not have any share with RIO before, to buy one now? the share that I am talking about is not RIOR, but it is RIO... because I found the price is quite low currently and there is huge chance it will increase in the future...

I'm curious to know how you determine the huge chance that it will increase in the future?

The way I understand it is, the rights issue has increased the number of shares and therefore decreased the value of the existing shares. There are better explanations in previous posts in this thread.

 

[Nero64]

I just wanted to share my thoughts and see if anyone is still paying attention.

Yeah I have been watching RIO like a hawk. The $2 gap down yesterday would've gone through a lot of stops. I got stopped out the day before. Some may have repurchased out of an angry reflex which is often the case.

I was going to buy at $47.34 or so. My heart said yes but my brain said no. It is now $2.26 above that. Volume Rising today which is good.

This stock has a habit of going for $10 rebounds. Not sure if it will now after this rights issue. Yes it is diluted but it still looks attractive long term.

 

[lianeisme]

I'm new to the stock market and don't understand a whole lot, but I have been buying and selling Rio since November. It has proved to be a nice cash cow. The stock is very predictable we seem to have decoupled 4 times since November from the world markets. I bought Rio at $46.80 and took up my rights now my average is $40.25 All been said the stock should rise to around 3.87% today. BHP should go to 3.05% it will fluctuate between there today. After 10 July will be the real tell tale on what the stock is going to do that is when all the shares become one. I am trying to average so I actually own these shares and it cost me nothing.

 

[Sean K]

I'm new to the stock market and don't understand a whole lot

OK

All been said the stock should rise to around 3.87% today. BHP should go to 3.05% it will fluctuate between there today.

OK

I am trying to average so I actually own these shares and it cost me nothing

HUH?

Looking forward to 3.87 and 3.05%!



This must be Gann analysis right?

 

[lianeisme]

No its my mathematical equations that I have set for myself. Rio closed yesterday at $49.60 it should trade today at around $50.90 to $51.18
As I have said I don't know a lot but this is what I have been doing and it has worked for me.

 

[Sean K]

No its my mathematical equations that I have set for myself. Rio closed yesterday at $49.60 it should trade today at around $50.90 to $51.18
As I have said I don't know a lot but this is what I have been doing and it has worked for me.

How do you work this out? Very interesting.Surely you are basing this on overseas prices. Would be easy enough to say that. Or?

 

[lianeisme]

I watch the world markets and then do the averaging from there anywhere the stock trades. I have bought and sold rio many times and have actually made$17,780 out of the stock so far so if I really look at the figures RIO now ows me $20.11 per share I hope to own the stock for free by the end of the year

 

[Sean K]

I watch the world markets and then do the averaging from there anywhere the stock trades. I have bought and sold rio many times and have actually made$17,780 out of the stock so far so if I really look at the figures RIO now ows me $20.11 per share I hope to own the stock for free by the end of the year

RIO owes you $20.11 per share.



I think you might be aiming to be free carried by the end of the year.

Well, all the best!

Lets hope that RIO goes where the average of world markets go. As long as you're on the right ride of that equation!