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Thursday, July 12, 2007

Cramer Misses Big Gain in Rio Tinto plc (RTP)

Jim Cramer first recommended Rio Tinto (RTP) in the main block of Mad Money as one of six mineral stocks on February 21, 2006 along with Manitowoc Company (MTW), Freeport-McMoRan Copper & Gold (FCX), BHP Billiton (BHP), Caterpillar (CAT), and worst-of-breed name Terex (TEX). Viewers would have captured a small gain of nearly 8% until January 8, 2007 when Cramer briefly proclaimed "The commodity boom is over" and suggested the larger Companhia Vale do Rio Doce (RIO) as the only large-cap metals play he was willing to endorse. Well, the commodities boom is certainly not over yet and since March 2007, the large-cap metal miners have been some of the best performing stocks out there. Viewers of Mad Money would have missed a gain of 48% in Rio Tinto (RTP) by the time it was recommended again in May 2007, but if they had swapped into RIO as Cramer had recommended, they could have captured an even more impressive gain of 56% in just four months.

Jim Cramer track record on RTP

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