by Kris Sayce on November 13, 2008
This morning we were beaten to it by The Age newspaper. Damn the ruthless efficiency and timeliness of the printed press.
“$2 company has new meaning” reads the front page story. It tells us that 48 of the S&P/ASX200 companies are trading for less than $2. We did a similar check on the S&P/ASX100 index yesterday. Fifty-three of those companies are trading for less than $5.
Of course the actual dollar value of the share price is not always significant. The market capitalisation of the company is more relevant. But it’s certainly a far cry from the euphoria of last year. Remember when pundits were jumping up and down with excitement trying to pick which Australian share would be the first to break through the $100 barrier?
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by Kris Sayce on August 27, 2008
It was almost like the Harrod’s Boxing Day Sale at 4pm last night. The bell rang for the market close and Rio Tinto [ASX:RIO] released its first half results onto an expecting public.
It really just gave Australian investors 15 minutes to digest the 42-pages of the press release to decide whether this was a stock they wanted to be in or out of when the market re-opened this morning.
It didn’t look too hot in early trade in London [LON:RIO], falling by over 3% as the London market fell, but then recovered ground to end almost even for the day. The share price performance is almost the secondary consideration. The key information that most investors would be looking for is the impact the results will have on the takeover bid made by BHP Billiton [ASX:BHP].
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by Gabriel Andre on August 25, 2008
The stock (ASX:RIO) is still backed by a long-term bullish trend started in early 2007. It has posted low prices during this month of August but found this long-term support and has been bouncing back for 6 days now.
Despite a false break generated by the plunging equity markets one year ago when the subprime crisis blew up, the support line of the bullish trend remains valid. It means that over the long-term, the lows are posted higher. Therefore the slope typically illustrates an increasing price development.
From May 19, which is the historical high price, to August 13, RIO fell by 30%. The fact that the long-term support has been tested and validated twice recently argues for the end of this 30% decrease. The bearish trend is therefore completed. It is likely to open the way to a new bullish trend.
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