pe ratio to reduce share price 50 percent

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.