Rio Tinto Rights offer

mutley74

As a now laid back share investor i hold some Rio shares both inside and outside an ISA.

No idea if to take up the Rio Rights offer.....is it just throwing more good money after bad?
or is there a hidden bargain there?

any views or links to news on this welcome, as i have had no time to look into this anymore.

Nosht

Rio Tino, probably the safest investment ever despite their high level of debt.I missed out when their price dropped to £9 a few years ago, then missed out again when they dropped to £10 a few months ago but I will be patient & will catch them next time round (I hope !!).This abandoned deal with China is a good sign but long term there is probably nothing safer to invest in.Regards,N.

StevieJ

mutley74 wrote: »

As a now laid back share investor i hold some Rio shares both inside and outside an ISA.

No idea if to take up the Rio Rights offer.....is it just throwing more good money after bad?
or is there a hidden bargain there?

any views or links to news on this welcome, as i have had no time to look into this anymore.

Normally rights issues are pitched well below market price, if you don't take them up you usually would lose out, we are not in normal times however, as can be seen with banks where the rights price fell below the market price.

mutley74

Nosht wrote: »

Rio Tino, probably the safest investment ever despite their high level of debt.I missed out when their price dropped to £9 a few years ago, then missed out again when they dropped to £10 a few months ago but I will be patient & will catch them next time round (I hope !!).This abandoned deal with China is a good sign but long term there is probably nothing safer to invest in.Regards,N.

the high level of debt is concerning plus lowering of demand globally for Rio's products. I bought in about £30 thinking it was a good share price at the time...obviously i am now cautious about pumping more money after bad.