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Strategies & Market Trends : Value Investing

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To: TheBigLong who wrote (46307)	1/24/2012 2:45:20 PM
From: E_K_S	Read Replies (1) of 78744

Hi TheBigLong - Welcome to the Value Investing SI thread and hope to see more of your posts. As your fist post, you raise a good value opportunity and for me RIO is one I have put back on my radar screen. You will find that most (if not all) of these mining/resource companies sell well below their Graham No. That is why I think they hold a lot of value. I used to own RIO and probably need to evaluate this one along with the other natural resource companies I own and compare them to their current GN No. finance.yahoo.com Rio Tinto Plc Common Stock (NYSE: RIO) - GN: $77.39 (Discount to GN 34%) Dividend= 1.9% BHP Billiton Limited Common Sto (NYSE: BHP) GN: $64.02 (No Discount Over Valued by 20%) Dividend= 2.8% VALE S.A. American Depositary (NYSE: VALE) GN: $38.55 (Discount to GN 57%) Dividend = 0.20% ANGLO AM PLC ADR (Other OTC: AAUKY.PK) GN: $34.22 (Discount to GN 65%) Dividend = 1.7% -------------------------------------------------------------------- RIO is one I should look at as it is selling at a 34% discount to it's GN. I recently added to my VALE shares and I probably should add to my AAUKY.pk shares since it shows the biggest discount to it's GN at 65%. For perspective, I loaded up on AAUKY shares during the 2009 crash on 1/13/2009 w/ shares purchased at $10.47/share. The stock hit a recovery high of $25.00/share where I peeled off a few shares. I knew they were on sale but w/o the reference GN number to look at, I missed a true bargain. I was planning on selling a few more shares around $24.00/share but may hold off knowing that the calculated GN value is $34.22/share. I have found that these resource companies never really exceed their GN value by much when compared to other non-resource companies. I probably should think of peeling off shares of my BHP and buying some RIO, VALE and AAUKY. I added RIO to my GN watch list along with VALE and AAUKY. If you notice any other of these resource companies selling at a discount to their GN, please post. EKS

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