Why isnt anyone discussing long RIO, short BHP as a high value play?
Given that BHP has already failed in its initial 3:1 attempted t/o bid, it is highly likely they will up the ante to 3:1 + cash or even 3.5 or 4:1. BHP isnt going to give up this play easily without a fight so there is a real floor
At Fri close prices, the current ratio is only 130.9/42.47 = 3.08 (2% premium) which infers significant upside in the event of a substantially revised BHP bid.
Consider also that on London's closing prices, the ratio is 5624/1628 = 3.45 which is obviously already pricing in a future bid.
Surprised that this play is so underpriced in our market, think its seriously worth a look.
FWIW, ive got it on 500k size.
Happy Hunting.
long rio short bhp
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Last
$42.06 |
Change
-0.930(2.16%) |
Mkt cap ! $213.4B | |||
| Open | High | Low | Value | Volume |
| $42.33 | $42.50 | $41.94 | $609.8M | 14.57M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 5770 | $42.05 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $42.11 | 2807 | 1 |
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| Last trade - 16.10pm 18/10/2024 (20 minute delay) ? |
| BHP (ASX) Chart |