Alright, one last word on this company. In a conservative market you have to look at pe ratios. RIO currently have a pe ratio of 19 which indicates most of the bull run has happened on speculation of a takeover.
If rio doesnt double profit this year, the share price will halve back to a per ratio of 8 or 11 somewhere between $50 and $80 based on these curret prices. I tend to think rio share price will settle at $65 with a pe ratio of 9 in this eratic market.
Rio is not a diversified miner in my opinion with most of its eggs in one market, I compare it to companies like MRE who only mine nickel and currently have a pe ration of about 5. I think in this market a to justify a pe ration above 11 a miner must be diversified and have huge long term upside without being vunerable to a large correction in comodity prices. In otherwords survive a recession.
In summary to justify a current share price rio has double profit and there has to be more upside than just doubling profit.
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Last
$110.79 |
Change
-1.380(1.23%) |
Mkt cap ! $41.20B |
Open | High | Low | Value | Volume |
$111.10 | $111.69 | $110.55 | $46.39M | 416.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 949 | $110.79 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$110.80 | 41 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 96 | 110.760 |
3 | 85 | 110.750 |
3 | 91 | 110.740 |
4 | 183 | 110.730 |
6 | 160 | 110.720 |
Price($) | Vol. | No. |
---|---|---|
110.810 | 233 | 8 |
110.820 | 195 | 5 |
110.830 | 141 | 5 |
110.840 | 112 | 3 |
110.850 | 192 | 4 |
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