Flash Alert: Rio Tinto
The proposed acquisition of Rio Tinto (NYSE: RTP) by BHP Billiton (NYSE: BHP) has sent the former’s shares up big time today.
Rio Tinto was one of the first recommendations we made in VRI after we took over as editors in early October. Today’s market action gives us a 33 percent gain in the stock in a month’s time and also gives credence in last week’s discussion of the consolidation trends in the resource sector. (See VRI, November 2, 2007, Joining Forces.)
If you own Rio Tinto, take the recent gains (in dollar terms) off the table and let your initial investment ride. In other words, don’t sell the stock outright; just skim some of the profits.
Rio Tinto will remain in the VRI Portfolio because we like the long-term story; we’ll continue to follow it closely. For more on Rio Tinto, see VRI, October 4, 2007, The Definite Bull.
Rio Tinto was one of the first recommendations we made in VRI after we took over as editors in early October. Today’s market action gives us a 33 percent gain in the stock in a month’s time and also gives credence in last week’s discussion of the consolidation trends in the resource sector. (See VRI, November 2, 2007, Joining Forces.)
If you own Rio Tinto, take the recent gains (in dollar terms) off the table and let your initial investment ride. In other words, don’t sell the stock outright; just skim some of the profits.
Rio Tinto will remain in the VRI Portfolio because we like the long-term story; we’ll continue to follow it closely. For more on Rio Tinto, see VRI, October 4, 2007, The Definite Bull.
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