Rio Tinto Share Price (RIO)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Rio Tinto Plc	LSE:RIO	London	Ordinary Share	GB0007188757	ORD 10P

	Price Change	% Change	Share Price	Shares Traded	Last Trade
	-12.00	-0.25%	4,856.00	1,045,649	13:44:47

Bid Price		Offer Price	High Price	Low Price	Open Price
4,855.50		4,856.50	4,873.50	4,791.50	4,797.50

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
Mining	31,775.73	14,245.83	622.00	7.7	-

Last Trade Time	Trade Type	Trade Size	Trade Price	Currency
13:44:38	AT	83	4,856.00	GBX

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Rio Tinto (RIO) Latest News (16)

Rio Tinto News

Date	Time	Source	Headline
16/7/2019	13:18	DJN	Commodity Comment: Rio Tinto Forecasts Lower Copper Production and Iron-Ore..
16/7/2019	08:51	ALNC	UPDATE: Rio Tinto Says Mongolian Mine May Be Delayed By Up To 2 Years
16/7/2019	07:09	ALNCF	Alliance News Flash Headline
16/7/2019	07:00	UKREG	Rio Tinto PLC Second quarter operations review
16/7/2019	06:53	ALNC	TOP NEWS: Rio Tinto Iron Production Falls On Tropical Cyclone Veronica
16/7/2019	05:54	DJN	Rio Tinto Faces Delays, Added Costs for Big Copper-Mine Project
16/7/2019	00:14	DJN	Rio Tinto Says Mongolia Underground Copper Mine to Take Longer, Cost More
15/7/2019	16:58	UKREG	Rio Tinto PLC Transaction in Own Shares
12/7/2019	16:58	UKREG	Rio Tinto PLC Transaction in Own Shares
12/7/2019	16:03	DJN	Rio Tinto Will Shutter Argyle Mine Next Year

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Rio Tinto (RIO) Discussions and Chat

Rio Tinto Forums and Chat

Date	Time	Title	Posts
16/7/2019	08:35	RIO TINTO-THE INVESTORS INFORMATION LINE	1,602
13/7/2019	15:15	Rio Tinto Investors thread	399
10/7/2019	08:45	RIO - TRADERS THREAD	55,163
13/2/2019	10:27	Only a question of time before Rio take out GGP and BP take out UKOG	-
28/11/2014	14:44	Tip TV Daily market Round-up	-

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Rio Tinto (RIO) Most Recent Trades

Trade Time	Trade Price	Trade Size	Trade Value	Trade Type
12:44:38	4,856.00	83	4,030.48	AT
12:44:38	4,856.00	50	2,428.00	AT
12:44:38	4,856.00	150	7,284.00	AT
12:44:35	4,856.50	163	7,916.10	AT
12:44:34	4,856.50	17	825.61	AT

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Rio Tinto (RIO) Top Chat Posts

Date	Subject
16/7/2019 09:20	Rio Tinto Daily Update: Rio Tinto Plc is listed in the Mining sector of the London Stock Exchange with ticker RIO. The last closing price for Rio Tinto was 4,868p. Rio Tinto Plc has a 4 week average price of 4,616p and a 12 week average price of 4,348.50p. The 1 year high share price is 5,039p while the 1 year low share price is currently 3,460.50p. There are currently 1,304,485,197 shares in issue and the average daily traded volume is 2,507,594 shares. The market capitalisation of Rio Tinto Plc is £63,221,875,072.61. Read Full Thread Reply
03/7/2019 12:23	maywillow: Macquarie tips Rio Tinto share price to hit $114 Motley Fool Staff \| July 3, 2019 \| More on: RIO Financial news wires are reporting that the expert mining analysts at Macquarie Group Ltd (ASX: MQG) expect the Rio Tinto Limited (ASX: RIO) share price could hit $114 in 2019. Rio Tinto shares are already up around 34% over just the past year to $107.14 today largely on the back of the unexpected rise of the iron ore price from US$67 per tonne at the start of 2019 to US$121 per tonne today according to data provider Market Index. The iron ore price rise is largely due to supply constraints out of Brazil after a tragic mining accident killed more than 300 people in the world’s second largest producer of iron ore behind Australia. Rio Tinto has also benefited from the falling Australian dollar as most of the WA miner’s operating costs are incurred in Australian dollars before it sell its product in US dollars. This provides a big uplift to margins and profits meaning the miner can pay out bigger dividends. On June 19 2019 Rio was forced to revise down 2019 production to between 320 million to 330 million tonnes of iron ore in a result it blamed on “operational challenges” and a higher proportion of low grade product that originally expected. Read Full Thread Follow Reply
14/6/2019 06:56	the grumpy old men: Why the Rio Tinto share price is outperforming with the sector today Brendon Lau \| June 14, 2019 \| More on: BHP FMG RIO Race Many of the big ASX miners are outperforming the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index this morning after the price of iron ore hit a five-year high. The Platts Iron Ore Index, or IODEX, jumped to $US110.20 a tonne and has gained more than 50% since January, according to the Australian Financial Review. This pushed the Rio Tinto Limited (ASX: RIO) share price up nearly 2% to $103.82 this morning, while the BHP Group Ltd (ASX: BHP) share price added 1.1% to $40 and the Fortescue Metals Group Limited (ASX: FMG) share price surged 4.6% to $8.73. Iron ore in a seller’s market Worries about the supply of mainstream iron ore fines are reported to be behind the latest price surge and traders are expecting tight supply in July and August. It’s a seller’s market – at least in the short-term with some analysts predicting the price of the commodity could jump to US$120 a tonne by August. The strength of the steel making ingredient is defying the gloom cast over the Chinese economy from the ongoing trade spat between the US and China. This is largely based on two factors. The Chinese government may step up infrastructure construction to offset the slowing economy and that means greater demand for steel. The other factor is that profit margins for Chinese steel mills are still reasonably healthy. These mills will keep buying iron ore to produce steel as long as they can make a buck! Risk of a price correction in the second half But not everyone is a bull. Some analysts, including those from Citigroup, point out that profit margins of these mills are under pressure and have become razor thin in recent times and that the supply of residential property is outstripping demand, which leads to a real risk that steel production could fall in the second half of this calendar year. This isn’t a given so it’s probably a little premature to be selling off all your holdings in iron ore stocks. The high price of the commodity also gives me some comfort as it provides room for a fall without necessarily triggering a consensus profit downgrade cycle for these stocks. Foolish takeaway Many analysts have assumed an iron ore price that’s materially under US$100 a tonne, so even if the ore price were to fall 20% from its expected peak, that shouldn’t impact much, if at all, on share valuations. On the flipside, if iron ore prices stay higher for longer (and it seems to have a bit of a history of remaining stubbornly high) or if it only dips modestly, shares in our major iron ore producers can enjoy a consensus profit upgrade instead. But iron ore stocks aren’t the only group with a promising outlook. The experts at the Motley Fool have uncovered some gems that are well placed to outperform in 2019. Read Full Thread Follow Reply
09/6/2019 12:10	la forge: A Deeper Look into the Quant Scorecard For: Rio Tinto Group (LSE:RIO), UBS Group AG (SWX:UBSG) Written by John Wilkes × June 9, 2019 There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Rio Tinto Group (LSE:RIO) is 0.142469. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return. Creating a diversified stock portfolio is one way that investors may combat the unknown. Appropriate levels of risk that include different market scenarios might vary from one individual investor to the next. Investors may need to careful that they do not become too reliant on one big position. When that position is producing returns, it can be easy to assume that the holding will continue to produce positive results. If the portfolio is weighted too heavily on one or two big positions, an overall market downturn may send the investor reeling. Finding that proper portfolio balance is typically what dedicated investors strive for. Taking a step further we can take a look at various other valuation metrics. Rio Tinto Group (LSE:RIO) has a Price to Book ratio of 2.146671. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 7.933295, and a current Price to Earnings ratio of 6.876337. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued. The Free Cash Flor Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Rio Tinto Group (LSE:RIO) is 0.049266. The Return on Invested Capital (aka ROIC) for Rio Tinto Group (LSE:RIO) is 0.163431. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Rio Tinto Group (LSE:RIO) is 3.920713. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Rio Tinto Group (LSE:RIO) is 0.117215. Rio Tinto Group (LSE:RIO) presently has a current ratio of 1.92. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations. In terms of value, Rio Tinto Group (LSE:RIO) has a Value Composite score of 24. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 16. Quant Ranks (ERP5, Gross Margin, F Score) The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Rio Tinto Group (LSE:RIO) is 4487. The lower the ERP5 rank, the more undervalued a company is thought to be. The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Rio Tinto Group (LSE:RIO) is 7. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover. Investors may be interested in viewing the Gross Margin score on shares of Rio Tinto Group (LSE:RIO). The name currently has a score of 40.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. Price Index The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Rio Tinto Group (LSE:RIO) for last month was 1.02182. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Rio Tinto Group (LSE:RIO) is 1.11648. Price Range 52 Weeks Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Rio Tinto Group (LSE:RIO) over the past 52 weeks is 0.946000. The 52-week range can be found in the stock’s quote summary. Read Full Thread Follow Reply
07/6/2019 11:22	grupo guitarlumber: DIRECTORS TALK Rio Tinto plc 10.7% Potential Decrease Indicated by Barclays Capital Posted by: Amilia Stone 7th June 2019 Rio Tinto plc with EPIC/TICKER (LON:RIO) had its stock rating noted as ‘Downgrades217; with the recommendation being set at ‘UNDERWEIGHT’ this morning by analysts at Barclays Capital. Rio Tinto plc are listed in the Basic Materials sector within UK Main Market. Barclays Capital have set their target price at 4000 GBX on its stock. This indicates the analyst believes there is a potential downside of -10.7% from the opening price of 4478 GBX. Over the last 30 and 90 trading days the company share price has increased 56 points and increased 335 points respectively. The 1 year high stock price is 4821 GBX while the year low share price is currently 3460 GBX. Rio Tinto plc has a 50 day moving average of 4,609.79 GBX and the 200 Day Moving Average price is recorded at 4,108.85. There are currently 1,261,305,013 shares in issue with the average daily volume traded being 3,023,103. Market capitalisation for LON:RIO is £56,828,097,360 GBP. Read Full Thread Follow Reply
27/5/2019 08:01	grupo: BHP, Fortescue, & Rio Tinto higher as iron ore prices surge again James Mickleboro \| May 27, 2019 \| More on: BHP FMG MGX RIO ASX iron ore miners Although the market has had a subdued start to the week, that hasn’t stopped Australia’s leading iron ore producers from storming higher this morning. In morning trade the iron ore industry has been one of the best performing areas of the market thanks to yet another rise in the price of the base metal. Here’s the state of play at the time of writing: The BHP Group Ltd (ASX: BHP) share price is up 1.5% to $38.00. The Fortescue Metals Group Limited (ASX: FMG) share price has pushed 1.6% higher to $8.35. The Mount Gibson Iron Limited (ASX: MGX) share price has climbed 2.5% to $1.28. The Rio Tinto Limited (ASX: RIO) share price is 1.5% higher to $102.76. What happened with iron ore prices? Iron ore prices continued their rise on Friday and closed in on five-year highs. According to Metal Bulletin, the price of the benchmark 62% fines rose 1.5% to US$105.32 a tonne, leaving it trading within a whisker of its five-year high of US$105.78 a tonne. Gains were also made by both lower and higher grade ore. The price of the lower grade 58% fines rose 0.3% to finish the week at US$87.02 a tonne, whereas the higher grade 65% fines closed the week with a 0.7% gain to US$119.30 a tonne. What’s next for iron ore prices? The good news for shareholders of these miners is that all signs are pointing to further gains today after Chinese iron ore futures finished the week on a very strong note. In fact, futures contracts closed the week at a record high thanks to increasing demand from Chinese steel producers after a production ramp up and declines in stockpiles at Chinese ports. If this leads to further increases in iron ore prices this week, it wouldn’t be at all surprising to see the likes of BHP, Fortescue, and Rio Tinto continue their charge higher. Read Full Thread Follow Reply
11/8/2017 10:36	christh: Why Rio Tinto Is 'Top Dividend-Paying Rock Stock' With 4.77% Yield (RIO) August 10, 2017, 09:57:43 AM EDT By DividendChannel.com, BNK Invest Rio Tinto plc (Symbol: RIO) has been named as the ''Top Dividend-Paying Rock Stock'', according to Dividend Channel , which published its most recent ''DividendRank'' report. The report noted that among shares of companies in the minerals and mining space, RIO displayed both attractive valuation metrics and strong profitability metrics. For example, the recent RIO share price of $46.16 represents a price-to-book ratio of 1.6 and an annual dividend yield of 4.77% - by comparison, the average stock in Dividend Channel's coverage universe yields 3.6% and trades at a price-to-book ratio of 2.3. The report also cited the strong semi-annual dividend history at Rio Tinto plc, and favorable long-term multi-year growth rates in key fundamental data points. The report stated, '' Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research. '' The current annualized dividend paid by Rio Tinto plc is $2.200118/share, currently paid in semi-annual installments, and its most recent dividend ex-date was on 08/09/2017. Below is a long-term dividend history chart for RIO, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. http://www.nasdaq.com/article/why-rio-tinto-is-top-dividend-paying-rock-stock-with-477-yield-rio-cm830169 Read Full Thread Follow Reply
05/5/2017 12:03	robrah: Filter me But the fact is iron ore over supply won't go away , this will hurt the share price. Sterling will recover to compound the impact on rio share price atleast in the UK. Rio not only has to deal with bhp and Vale. FMG are at par with rio cost of production if not better now . Rio s copper business is not exectly flying either Signs are there . If one choose to ignore. Well that is the problem Read Full Thread Follow Reply
12/8/2016 10:13	christh: Rio Tinto: A Core Investment In The Mining Sector Despite The Dividend Cut Aug.10.16 \| About: Rio Tinto (RIO) Rio Tinto reports acceptable half-year results and cuts the interim dividend by 58% to 45 cents. The dividend for the full year will be at least 110 cents. Higher free cash flow allowed to reduce net debt. If iron remains at $55, Rio Tinto will surely continue to make progress. Rio Tinto (NYSE:RIO), the world's second largest iron ore miner, reported half-year results on August 3. Underlying EBITDA fell 27% to $5,367M compared to $7,303M in the year before. Underlying earnings dropped 47% to $1,563M or $0.95 per diluted share. Strong free cash flow enabled the company to reduce net debt from $13.8B at the end of last year to $12.9B on June 30, and gearing was lowered from 23% to 21%. Underlying earnings are a key metric for Rio Tinto shareholders as they determine the dividend after the introduction of the new policy in February 2016. Total cash returns to shareholders shall be in a range of 40% to 60% of underlying earnings in aggregate through the cycle. The 45 cents interim dividend which was just declared is in the middle of that range and represents 52% of underlying earnings. Nevertheless, it is a 58% reduction compared to the last interim dividend of 107.5 cents. Rio Tinto also stated that for FY16, the board's intention is the final dividend paid next year will be at least 65 cents per share. Business Outlook After the recovery of prices from their 10-year lows at the beginning of the year, the importance of iron ore for Rio Tinto's profitability is as high as it used to be in the past. Iron ore represents 60% of underlying EBITDA in the first half of 2016 and 82% of underlying earnings before other items. Rio Tinto's Product Groups Product Group Revenue [$M] 1HY16 Revenue [$M] 1HY15 Underlying EBITDA [$M] 1HY16 Underlying EBITDA [$M] 1HY15 Underlying Earnings [$M] 1HY16 Underlying Earnings [$M] 1HY15 Iron Ore 6,303 7,004 3,438 4,010 1,743 2,100 Aluminum 4,553 5,455 1,076 1,688 377 793 Copper & Diamonds 2,453 3,263 655 1,335 -67 393 Energy & Minerals 2,960 3,524 531 620 82 74 Other operations/ other items/ exploration/net interest -4 -12 -337 -350 -572 -417 Total 16,293 19,234 5,367 7,303 1,563 2,923 Source: Company website. Iron ore is Rio Tinto's bright spot, and it will likely continue to be the driver for an improved business performance going forward. In 1HY16, Rio Tinto realized an average iron ore price of $44.5/wmt FOB basis, equivalent to $48.4/dmt. Pilbara cash unit costs fell to $14.30/ton, compared to $16.20 in the first half of 2015 . At present it seems that the iron ore price recovery can be sustainable, and assuming an average price of $55/dmt for the rest of the year, Rio Tinto's EBITDA in 2HY16 could grow by around $800M. All other segments had to face stronger headwinds in the first half-year, and combined underlying EBITDA fell 38% or $1,381M from $3,463M to $2,262M. This compares to a $572M EBITDA reduction corresponding to a 14% decline for the Iron Ore product group. Although some improvements can be expected in the second half of the year, the other product groups are unlikely to have a substantial positive impact on Rio Tinto's result. For Aluminum, the second largest segment, I expect a slightly improved performance based on constant volume and better pricing. Not much progress can be anticipated from Copper and Diamonds. Copper is one of the few disappointments in the commodity sector as prices remain at depressed levels, and the red metal did not benefit from the broad mining rally of 2016. Volumes will not contribute to growth either as Rio Tinto's production will essentially remain flat in the second half-year. Energy and Minerals is likely to see a stronger second half-year, driven by various factors. Prices for thermal coal recovered noticeably in recent months due to higher imports to China. Metallurgical coal prices are up as well inline with strong demand for steelmaking raw materials. The contribution of iron ore pellets from IOC (Iron Ore Company of Canada) which are reported under Energy and Minerals, will continue to increase on higher production volumes. All these trends point toward higher cash flows in the second half of 2016. Net cash generated from operating activities of $3.2B in 1HY16 was 24% lower than in 2015, but capital expenditures of $1.3B ($1.1.B less than last year) and raising $0.6B through asset sales increased cash generation, allowing Rio Tinto to reduce net debt by $0.9B. The reduced dividend in the second half-year will liberate additional cash. With the final payment in April 2016, the company distributed $1.9B to shareholders. The lower interim dividend of $0.45 will save Rio Tinto around $1.1B later in the year. On the other side, capital and exploration expenditures will increase based on Rio Tinto's guidance of $4.0B for FY16. New projects and primarily the development of the Oyu Tolgoi underground copper mine in Mongolia with a projected investment volume of $5.3B and the Amrun bauxite project in Queensland with $1.8B remaining will increase capex in the near future. They will bring expenditures up to $5.0B in 2017 and $5.5B in 2018, including around $2.0B of annual sustaining capex. Assuming an at least stable price environment for Rio Tinto's major products and predominantly iron ore, my estimation is that the company's operational performance will continue to improve which should lead to at least constant free cash flow. This should enable the company to reduce net debt further or possibly pay out more than the $1.10 minimum dividend. Share Price and Dividend With the strongest balance sheet and the lowest cost delivered to China, Rio Tinto remains the most solid of the major iron ore miners. This has not spared shares from falling nearly 50% to a low of $22 in January, but the stock has recovered nearly 50% since then. Compared with its peers BHP Billiton (NYSE:BHP) (NYSE:BBL) and particularly Vale SA (NYSE:VALE), Rio Tinto has been less volatile. Despite the dividend cut, Rio Tinto maintains an above average yield, higher than BHP's, not to mention Vale which suspended the dividend entirely. With the outlook of a minimum dividend of $1.10 for FY16, Rio Tinto yields 3.4%. As I said earlier, a healthy cash flow might even allow Rio Tinto to pay more than $0.65 final dividend, but it is too early to count on it yet. Conclusion Rio Tinto has mastered the commodity downturn quite well, and the stock bottomed earlier in the year. The company's balance sheet which already belonged to the strongest in the industry improved further after the debt repayment. I'm optimistic about Rio Tinto's near-term outlook and the stock remains one of the key holdings in my mining's portfolio. Disclaimer: Opinions expressed herein by the author are not an investment recommendation, any material in this article should be considered general information, and not relied on as a formal investment recommendation. Before making any investment decisions, investors should also use other sources of information, draw their own conclusions, and consider seeking advice from a broker or financial advisor. hTtp://seekingalpha.com/article/3998497-rio-tinto-core-investment-mining-sector-despite-dividend-cut Read Full Thread Follow Reply
08/11/2015 17:17	kenmitch: There is NO evidence that Rio buybacks have kept the share price at a reasonable level. We cannot know what the RIO share price would be now if they hadn't bought back. It's just as likely it could be higher. Shares in the Mining sector rise and fall across the board on up and down days, and very few if anyone buying or selling ever thinks before doing so about whether or not that Company has bought back shares. If buybacks really did support the share price then BP share price after £30 billion spent on buybacks would now be much higher instead of way down on the buyback prices. And how much did the GLEN buybacks this year all over £2 help prevent the share price falling to below 70p. It would have fallen just as far without the buybacks, and arguably less far as they would have the $1.6 billion they chose to throw down the drain! And the real clincher is APPLE. They have spent a mind boggling $104 billion on buybacks and yet their share price is on a far lower rating than many other US Tech shares. Buybacks are brilliant for Directors though as their bonus payments are often based on EPS. And yes, buybacks do of course increase eps, but that doesn't automatically mean a higher share price. It's also brilliant for Directors that so many investors big and small just accept as read the nonsense that buybacks are always good. So they get away with wasting money on them over and over again, and happily enjoy their bonus payments too on top of often much too high rewards anyway. Read Full Thread Follow Reply
24/3/2015 17:04	kenmitch: christh But there is no evidence that the BT share price rise was because of the buybacks is there? Lot of shares go up (and down) a lot and the main drivers are buying and selling (obviously) and then news and results etc. Have you ever read the detailed research from Morgan Stanley on share buybacks? They found that time and again companies buying back their shares subsequently saw their share prices underperform others in the same sector that had not bought back. Rio have bought back heavily in the past and at times close to the peaks of long ago, and they too provided no protection for the share price when commodity prices fell. It really is a fallacy that share buyback = higher share price. Also you use the word "will" as though a Rio share price rise is a certainty. You use that word both in support of your case for buybacks and also because of Rio's current tactics. I happen to agree that for the reasons you give the share price is likely to rise, but it is not a certainty. And when I last checked Goldman Sachs had Rio as a conviction sell. I don't agree but the fact that some are negative means rarely is a share certain to go up. The Rio share price is likely to move up and down with others in the sector buybacks or no buybacks. When news from China improves and when the price of iron ore recovers THEN the Rio share price is likely to do very well. You can then claim that the buybacks were partly behind the rise. I would claim that Rio's and BHP's tactics now of not cutting back production is hitting higher producers hard and will likely mean both their share prices doing very well in time. You say that too so why the need to buy back their shares? Isn't it better to increase the dividend instead as a higher yield can mean more investing in Rio including big income funds. Read Full Thread Follow Reply

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