re: rio short term Hope it works out for you. This is something...

re: rio short term Hope it works out for you. This is something I saw in the ABN/Amro daily roundup. Not very encouraging I admit...

+ RIO: Day how many in the Round Up? Nathan and I have been writing to SHORT this thing for months. O/n, again, Rio didn’t look flash, falling another –5p with the spread out to – 2.7%. Let’s have (yes another) look at why I would not go long RIO with anyone’s money (and yeh, we’ve got an absolutely cracking PUT warrant). (a) weak commodity markets and prices, (b) currency issues – ours, theirs and everything else in between. Need evidence of the first two points? Look at Coal and Allied’s quasi-profit warning last week. Blatant casein- point. (c) Downgrades coming through willy-nilly, with Salamons knocking 9% of their Rio numbers last Friday and Merrill Lynch adding another downgrade o/n. To put that in perspective, JB Were is already bearish and CSFB is neutral. Only UBS appear to have a bullish call on the stock. (d) SARS. This has got to have had an impact on operations. Wait for clarifation here. Today, we add ANOTHER reason NOT to be long this thing. Have a look at a chart. It’s back at levels not seen since 9/11 in 2001. It actually got below that level intra-day y’day. If your looking for free money, short this thing. If for some reason this thing rallies, sell more. RIOWZR had some good volume through it y’day since it’s the best striked put in the market. It’s a July, $32, PUT. Get on board…