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
$40.01 |
Change
0.800(2.04%) |
Mkt cap ! $202.9B | |||
| Open | High | Low | Value | Volume |
| $40.07 | $40.25 | $39.67 | $474.9M | 11.69M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 15864 | $40.01 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $40.03 | 1196 | 1 |
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| Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
| BHP (ASX) Chart |