I do not hold any Australian mining stocks at the moment and while I had not planned to buy any soon, I definitely will not be buying any time soon.
Will we see RIO below 70? Without a doubt........as I would imagine all the big boys (BHP included) will at least be down by 10% straight off the open...where to after that is anybodies guess??!!
I mean just imagine what would happen to RIO's or BHP's shareprice if they came out with an unexpected and inexplicable 40% decrease in earnings?
The only difference here is that this is the doing of the Australian Government and instead of being an earnings downgrade for one period, it is locked in and re-occuruing.
Will definitely cruel the industry for a while to come yet - crazy move by Rudd in my humble opinion and makes you wonder what else is in store for those who choose to live in Australia.
Cheers.
K
RIO Price at posting:
$72.10 Sentiment: None Disclosure: Not Held
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