Mining goliath RIO enjoys the majority of its revenue from iron ore but similar to FMG it corrected over 17% from its March high showing that it doesn’t matter how good the story is if everyone’s long a stock will struggle. This months RIO result was solid with no surprises and the stocks forecast yield of over 5% fully franked is extremely attractive in today’s environment – hence our holding in the MM Income Portfolio. We feel, the recovery in RIO will be ongoing with a test of $130 our preferred scenario over the months ahead.
MM is bullish RIO short-term
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