Rio Tinto Shorts Rise, But Still Way Below Average

Rio Tinto reported results Wednesday. On Tuesday they announced the sale of their packaging arm to Amcor (AMCRY.PK), raising US$3.2 billion. Rio Tinto, BHP Billiton (BHP) and CVRD, the dominant iron ore producers, are meeting increasing competition from China who recently agreed a price cut deal with alternative ore supplier Fortescue Metals (FSUMF.PK). BHP and CVRD have short bases of 2.5% and 1.2% respectively.

The short interest (as measured by Percent Shares Outstanding On Loan) for Rio Tinto Plc (RTP) is up 105.63% over the past week and now stands at 0.32%. This is up 105.63% from the 52 week low hit on August 12, 2009. Even though the security has seen an increase in short interest of the past week, when compared to other Europe Metals & Mining companies, the short base is well below the average of 2.12% for the sector.

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Comments

[Slvrizgold:]

What is the significance of a 0.32% short interest, even if that short interest has risen 100% recently? I am sure that 0.32% of people eat their own boogers and that some days twice as many people eat boogers.

As for me, I will remain long precious metals and my other investments that produce prodigious cash flow rather than let my money sit in a depreciating currency of a bankrupt/defaulting nation that pays no interest and is managed by madmen, con artists, communists, and fools.

Physical silver is the BEST long term investment imo. Do you own due diligence dudes. Immerse yourself in the the reality of FACTS and draw your own conclusions. I have.

Is it any wonder the US dollar doesn't buy diddly squat since they closed the gold window and stopped putting silver in coinage. COINCIDENCE? I think not. Gold was $850+ and silver $50 BEFORE Raygun, Greenspasm, the Bush criminals, Slick Willie, Obama, and Ben Bukkake ever came along. Think about it. Where do you think the long term prices of precious metals are heading?!?!?

Aug 20 10:36 PM

[PutneyHillYank:]

Truth of it all is that Fortescue is the big winner here and into the near future

Aug 21 04:30 PM

[BullnBear:]

I like the booger reference, that’s classic and I’ll probably “borrow” that line from you just so you know.


On Aug 20 10:36 PM Slvrizgold wrote:

> What is the significance of a 0.32% short interest, even if that
> short interest has risen 100% recently? I am sure that 0.32% of people
> eat their own boogers and that some days twice as many people eat
> boogers.
>
> As for me, I will remain long precious metals and my other investments
> that produce prodigious cash flow rather than let my money sit in
> a depreciating currency of a bankrupt/defaulting nation that pays
> no interest and is managed by madmen, con artists, communists, and
> fools.
>
> Physical silver is the BEST long term investment imo. Do you own
> due diligence dudes. Immerse yourself in the the reality of FACTS
> and draw your own conclusions. I have.
>
> Is it any wonder the US dollar doesn't buy diddly squat since they
> closed the gold window and stopped putting silver in coinage. COINCIDENCE?
> I think not. Gold was $850+ and silver $50 BEFORE Raygun, Greenspasm,
> the Bush criminals, Slick Willie, Obama, and Ben Bukkake ever came
> along. Think about it. Where do you think the long term prices of
> precious metals are heading?!?!?

Aug 23 01:54 AM

[BullnBear:]

I’m careful with any short position in the metals or energy arena for no other reason then I think that the dollar is on life support at the moment.

I would actually like to see the dollar strengthen from a long term standpoint for our country and economy but I’m afraid that this is not on the current agenda.

The ramifications of the dollar continuing to weaken will cause a greater interest in the precious metals sector so I tend to believe that the up tick in the short interest is directly related to the normal hedge against a drop in price from someone heavy on the long side.

Aug 23 01:59 AM