rio put's, page-3

For every negative spin there appears to be a countering positive commentary like the one below:


"Retain exposure on stocks with commodity offsets ..

A leading European broker advises investors to retain exposure to stocks with commodity offsets(oil, gold, copper) against a weaker $US, suggesting BHP, Anglo American, and Xstrata are buys over Rio and Lonmin which are "holds". BHP up 19c to $9.64. RIO up 25c to $31.48

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Aussie Resources tracking the average rise from six "genuine" recoveries ..

Another leading broker said in six of the past seven genuine recoveries in OECD industrial production, Australian Resources rose. Aussie resources now seem to be tracking the six genuine recoveries. If the average cycle continues to be an accurate guide, it suggests 25 pct more upside over the next six months.

The smallest rise of the six genuine recoveries was 22 pct in 1975 and the biggest 67 pct in the 1986/87 recovery.

The only genuine rise in which Aussie resource stocks did not improve was in 1996.

The broker says the $A also remains below its forecasts of 67.55US c in the September quarter, 69.5 US c in the December quarter and 70.5 US c in the March 2004 quarter.

The broker adds that BHP and Rio are its top picks."