Comments on: "Brazilian Earnings Surprise Coming — Oct. 25"

By: Anonymous

Anonymous — Thu, 18 Oct 2007 04:47:00 +0000

I can’t predict RIO’s future, but I’m holding on with a gain of more than 100% since February. The future looks bright for miners so I’m also holding on to PCU, BHP, JOYG, PLM, NXG and BMD.
FYI – ABB has done well for those who bought it in 2005. I have a nice gain but I’m afraid to sell because I think it’s going higher.

By: Anonymous

Anonymous — Thu, 18 Oct 2007 03:19:00 +0000

If you want a metal trade and believe in China there is only BHP. It is up 100 percent this year and should double again

By: Marco Polo

Marco Polo — Wed, 17 Oct 2007 22:33:00 +0000

I've done very well with RIO over the past several months by buying call options a few months out, which adds a little protection to the position should it not perform particularly well in the short term.
For illustration purposes, here's how two trades worked out on CVRD (RIO):
April 11 - bought the Jan 08 $40 calls @ $5.81 and sold them on August 31st @ $11.50. I then bought the March 08 $50 call on August 31st @ $6.60 and sold them on Oct 1st at $12.04, basically doubling my money on both trades. The stock split on Sept 13th, but that did not affect the trade.
I currently have the March 08 $35 calls and will sell them forward once they double.
While owning the stock would also have returned almost 100% in this time frame, I managed to do twice that with the reasonably safe option trades. I probably would have done better by sticking with the Jan 08 $40 calls but rolling them forward and taking some profit along the way was a safer way to go and a bit more interesting (read fun)for me.
Good luck trading!
Marco

By: Anonymous

Anonymous — Wed, 17 Oct 2007 22:08:00 +0000

Posco (PKX) – touted in another teaser as the world’s #1 growth stock – tumbled some 25 points in the last two days following a poor earnings report. One of the reasons cited by The Motley Fool (http://www.fool.com/investing/dividends-income/2007/10/16/a-steelmaker-slips.aspx) was that Posco’s costs – mainly iron ore – have started to escalate. The article speculates that this could be bullish for Cleveland Cliffs, RIO and others of their ilk.