Macke stated, that when insiders are selling stock to raise money (15 billion) get out. Macke gave examples of other companies doing the same thing and they are all way down as a result.
Mackee is a complete jerk!i remember him saying pot and mos were all hype look how far they have advanced since then pot was 148 at the time and mos was at 98 thye guy is a big mouth loser an an ahole to boot.he doesnt know what the hell he talking about ever he like the loud mouth drunken asshyole in a bat that get slugged in t5he face for his rude comments!
After hours trading sent it down 2% in 15 minutes since his comment. Correct that these guys (and a girl) are dead wrong just as often as they are right. They been calling Citibank (C) a buy for 3 months! Look at that one recently and wish you had puts on it. All there wisdom is retrospect and math after the fact. They're great at speculating why something happened but lousy at predicing what will in the future.
Macke is the trader I like the least on that show. He seems to be wrong as much as Cramer. Besides, isn't he a retail expert? What does he know about the metals sector?
Second, remember that the show is "Fast Money" and for those of us who are looking beyond the next few months, this is a buying opportunity.
Every time I have sold RIO in the past, I was sorry six months later. I will hold long,long, plan to leave it to my grandchildren.
George Soros also said he was sorry last time he sold RIO.
For a show titled "Fast Money", they tend to concentrate on the TRADE rather than the investment type scenarios. AND the panel tends to be wrong just as much as anyone else (if not more) from what I've seen...remember, it is TELEVISION....do your own research and make your own decisions.
My decision is that this is a long term investment for me, so I am not concerned about tomorrow's movement only that the company is solid with good growth potentials.
just for a bit of context, Macke hates Brazil and has been negative all the way up.
I don't disagree with him that in the short term this will put pressure on the stock, but this is not a broken company.
my guess is that they are selling stock to buy coal, or copper. they tried to buy PD a long time ago and lost to FCX, so maybe they try again.
I think our real problem is that everyone seems to think this stock is a "sure" thing.
It does have a tendency to break the 200day ma, wiggle, then bounce back, so perhaps its best to keep your powder dry till then.
Vale Extends Decline After UBS Says Share Sale May Hurt Stock
2008-06-11 14:27 (New York)
By Diana Kinch and Alexander Ragir
June 11 (Bloomberg) -- Cia Vale do Rio Doce slid for a
fourth day in Sao Paulo trading after UBS AG said the miner's
plan to sell $15 billion in stock may hurt shares as the company
faces ``negative trends'' in its business.
Vale, the world's biggest iron-ore producer, slumped 1.8
percent to 47.73 reais at 1:50 p.m. New York time. The stock's
9.9 percent four-day decline is the biggest since January.
``Debt markets may be tough to access now, and Vale is
willing to issue more expensive equity to finance M&A, which may
keep share prices depressed in the short-term,'' wrote UBS
analysts Edmo Chagas and Carlos Vasques in a report today.
Vale said yesterday it would make its largest-ever share
sale to fund a planned $59 billion expansion and possible
acquisitions. The Rio de Janeiro-based company said it isn't
currently in talks for any ``strategic'' purchases.
According to the analysts, Vale's stock sale comes as it
faces lower nickel prices and shortfalls on iron ore shipments
because of infrastructure constraints.
``While some of the constraints are temporary, and nickel
prices seem to be supported by high cost producers, we do not
expect them to reverse before year-end.'' wrote Chagas and
Vasques. ``Also, sentiment on mining continues to deteriorate due
to an expected slowdown in demand also in the short-term.''
Vale increased its exposure to nickel price volatility
following its purchase of Canada's Inco Ltd. last year, which
made it the world's second-biggest producer of the metal. The
company in March shelved a $90 billion takeover bid for Xstrata
Plc after talks between the two sides broke down.
Where does it say insiders are selling? I read that rio is selling shares to fund acquisitions.
He referred to genco which sold shares as well as some insiders. those insiders still hold substantial amts. of stock. think fast money guy got his facts mixed up.
I heard the Fast Money comments, too.
Since RIO's market cap is 166B and they are selling 15B of new stock, isn't our diluted value limited to about 10% downside?
I'm more worried about the other negative short term comments (price of nickel, etc.)
He has his facts mixed up. There's no insider selling. RIOs strategy to build a war chest for acquisitions makes sense. This is the premier iron & minerals company in the world with accelated growth.
It was Genco Shipping (GNK) , a competitor of DRYS. I was a victim of buying that one high and selling it 20% lower just 2 weeks later. Gone down another 7% since. Logic is these are the shippers that haul all that coal and RIO iron Ore to China.