RTP is 70% down from their 52 week high. On its face their fundamentals don't show a reason for this steep decline. Any idea what happened there?
My feeling is that they're just about ready for a bounce back.
My feeling is that they're just about ready for a bounce back.
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2 Comments
Top 1%
guliamo
Oct 16 2008 at 10:36AM (EST)
It's pretty much the same story as BHP.
Raw materials were priced based on projected demand by indo-china. This demand was deducted from a 9-12% annual growth rate. It has become quite obvious that China nor India will grow half as much - hence the downtrend in price.
I don't think raw materials will spike back up, but I do see gradual growth once the dust settles..
Top 11%
alex108
Oct 16 2008 at 9:14PM (EST)
Would agree, although how long it takes the dust to settle can be a long time. Commodities are getting whacked and with the global downturn it may be some more downward movement. Long term RTP and BHP should do well, they are dominant especially where the growth is going to come from- China and India. I would wait a bit longer and then take a small position and add as the recovery happens (years?). Long horizons should be rewarded but like everything during this time it will be bumpy.