Thank you so much for the explanation Oldblue does that also mean that the stock will become less volatile and slowly creep up to around $90.00 plus per share?Share buybacks usually have the effect of underpinning the SP as the company concerned "mops up" any weak selling.
And, of course, it means a lesser number of shares on issue to share in future profits, thus enhancing eps.
Normally good news for remaining shareholders.
I don't hold RIO.
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Hey all,
I have recently invested in some RIO call options. I bought the options @ $78.77 on wednesday & much to my joy the stock has gained to $83.2 in two days.. ..im keen to get some ideas as to the likely trend going forward, it appears as though RIO could be heading up.
Any thoughts on when/if RIO can hit $90? What are the likelyhoods of stocks in RIO continuing to move up?
A
I have recently invested in some RIO call options. I bought the options @ $78.77 on wednesday & much to my joy the stock has gained to $83.2 in two days.. ..im keen to get some ideas as to the likely trend going forward, it appears as though RIO could be heading up.
Any thoughts on when/if RIO can hit $90? What are the likelyhoods of stocks in RIO continuing to move up?
A
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Ok, so did some browsing - Citi is rating RIO as a buy with medium risk. Target price is $100.
The question is at what pace can RIO reach this target?
The question is at what pace can RIO reach this target?
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RIO why down when finacials were great.
Still getting my head around this whole stock market thing,
i understand that the market has dropped today most probably due to profit taking,
What i dont understand is why people would be selling RIO when its just posted a huge production increase and appears to be in a really good position, plus isnt it just about to pay a dividend??
It surely is a long time share for holding so why sell it now???
Still getting my head around this whole stock market thing,
i understand that the market has dropped today most probably due to profit taking,
What i dont understand is why people would be selling RIO when its just posted a huge production increase and appears to be in a really good position, plus isnt it just about to pay a dividend??
It surely is a long time share for holding so why sell it now???
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Re: RIO why down when finacials were great.
Maybe the price priemium that investors have been paying above net assets was high in anticipation of better results. I mean it may have been already over valued because investors thoughts results were going to be really really strong, and when results came out that were only some what strong, the price has corrected.
But who knows share prices move for a million reasons that aren't related to the company on a daily balance. The share price is what it is. do you analysis. it it is undervalued or fairly valued and you believe in the companies assets buy some, if it is over priced and looks like it would be along time before companies true value reaches it's share price, think about selling some.
Still getting my head around this whole stock market thing,
i understand that the market has dropped today most probably due to profit taking,
What i dont understand is why people would be selling RIO when its just posted a huge production increase and appears to be in a really good position, plus isnt it just about to pay a dividend??
It surely is a long time share for holding so why sell it now???
Maybe the price priemium that investors have been paying above net assets was high in anticipation of better results. I mean it may have been already over valued because investors thoughts results were going to be really really strong, and when results came out that were only some what strong, the price has corrected.
But who knows share prices move for a million reasons that aren't related to the company on a daily balance. The share price is what it is. do you analysis. it it is undervalued or fairly valued and you believe in the companies assets buy some, if it is over priced and looks like it would be along time before companies true value reaches it's share price, think about selling some.
Julia
In Memoriam
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Re: RIO why down when finacials were great.
As Tyson has suggested, the market has usually factored in the figures the company is widely expected to report. Analysts will have crunched the numbers in preceding times and issued their recommendations accordingly.
It's usually only when a company delivers an unexpected result (either positive or negative) that you see much change in the SP.
As Tyson has suggested, the market has usually factored in the figures the company is widely expected to report. Analysts will have crunched the numbers in preceding times and issued their recommendations accordingly.
It's usually only when a company delivers an unexpected result (either positive or negative) that you see much change in the SP.
Garpal Gumnut
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RIO is down 9% atm in Londinium.
Cave ferrum.
gg
Cave ferrum.
gg
Wysiwyg
Everyone wants money
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Surely the Australian carbon tax has influenced the sale of Aluminium interests by Rio. Maybe their number crunchers came up with a carbon tax figure that would even worsen the bottom line for their "struggling" aluminium businesses.
However they have announced a substantial bid for a Canadian uranium explorer.
However they have announced a substantial bid for a Canadian uranium explorer.
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My opinion is that there will be a capital strike at the plants leading to actual closure sometime around the middle of next decade.
That's just my personal opinion as someone who's had a bit of background with the economics of aluminium smelting in general. It's also a reflection of current electricity contracts they have in place, particularly at Bell Bay.
Garpal Gumnut
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RIO is a much overlooked stock on this forum with a classic technical track from highs to lows and back again to new highs.
For the impecunious there are many RIO options and warrants which can be traded to give the impression that one is throwing bad money after good, as with penny stocks.
RIO has been good to me over many years, and saved my fortune on two occasions from memory.
It has completed a high to low of over $100 since 2008 and is now ranging between the 38% and 50% retracement of the high/low. This is an ideal situation for traders and those looking to the long term. It is accumulated and distributed according to all common technical theories and volume/price are a good indications of this occurring as per the accompanying chart.
I have been accumulating RIO and see no reason why it should not again hit $125 or higher in the near future. I trade it for the long term and opine that it is an essential component of any growth or SMSF portfolio.
gg
For the impecunious there are many RIO options and warrants which can be traded to give the impression that one is throwing bad money after good, as with penny stocks.
RIO has been good to me over many years, and saved my fortune on two occasions from memory.
It has completed a high to low of over $100 since 2008 and is now ranging between the 38% and 50% retracement of the high/low. This is an ideal situation for traders and those looking to the long term. It is accumulated and distributed according to all common technical theories and volume/price are a good indications of this occurring as per the accompanying chart.
I have been accumulating RIO and see no reason why it should not again hit $125 or higher in the near future. I trade it for the long term and opine that it is an essential component of any growth or SMSF portfolio.
gg
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Another cyclone brewing in the Pilbara will hit iron ore production.
And get me sent home
And get me sent home
Garpal Gumnut
Ross Island Hotel
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Another cyclone brewing in the Pilbara will hit iron ore production.
And get me sent home
It could very well intensify and get you home early.
gg
Mozambique: Foreign mining companies criticized
http://www.businessweek.com/ap/financialnews/D9SKNOR80.htm
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http://www.businessweek.com/ap/financialnews/D9SKNOR80.htm
***
Garpal Gumnut
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It's marching up past $70 now, if it gets through $75 it could reach it's former high.
Exciting times.
gg
Exciting times.
gg
Julia
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I wouldn't be getting too excited. As a small experiment in buy and hold I have a very small holding in RIO just to see what happens without active trading.
It has been there for about a year and I'm still well down the drain.
And the dividend certainly doesn't make up for the capital loss.
It has been there for about a year and I'm still well down the drain.
And the dividend certainly doesn't make up for the capital loss.
Garpal Gumnut
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I'd agree Julia, it has a bit of work to do to get back up in to the $100's.
It seems to be steaming atm though.
gg
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Off the back of a 59% NPAT decrease, I want to buy more RIO shares! (if the SP goes down far enough)
The underlying figures are great, just the Alcan write-down that hurt.
Just my 2c.
Garpal Gumnut
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Its the trading range, $60 to $73.
The longer it stays in this range the greater the break to the upside, which is likely. Or the downside which is less likely.
I will continue to load up on weakness in RiO.
gg
