Rinker (RIN): Winner

Submitted by Marco on 5 November, 2006 - 19:11

Rinker (RIN) Stock Price Chart

Rinker (RIN) was the best performing stock on the Australian sharemarket this week. (Winner of the week for week 43 of 2006) Rinker closed the trading week27 percent higher after a bid for the company at $17. However stock analyst and stock broker Credit Suisse have said that Cemex (the Mexican company bidding for Rinker) could pay up to US$15 a share (around $19.50) and still create value. Stock analysts in Australia have commented that the offer as it stands is too low and Cemex will have to increase the bid to between $17 to $21 a share. Cemex, the world's third-largest cement maker, seeks to take advantage of a slump in Rinker's share price, which fell 31 percent from an April 26 record A$21.44 on concern a housing slowdown in the U.S. will crimp earnings growth. Cemex will have to win support of Rinker's biggest investor, Sydney-based Perpetual Trustees Australia Ltd., which owned a 10.3 percent stake as of Aug. 17, meaning it can block the deal. With respect to technical charting it is interesting to note the trading volume spike past the 50 day Exponential Moving Average (EMA) on the Friday, 27th October.

Rinker Group Limited is listed on the Australian Stock Exchange (ASX) under stock code RIN. You can view their investor website here. RIN was listed on the ASX on 31 March, 2003. Rinker (RIN) is one of the world's top 10 international construction materials companies with operations supplying aggregate, cement, concrete, concrete block, asphalt, concrete pipe and other construction materials to over 34,000 valued customers. Market capitalisation is around US$10 billion. Rinker Group has over 14,000 employees in over 770 sites across the US, Australia and China. Around 85 per cent of the group earnings come from Rinker Materials in the US. Here is a previous Rinker (RIN) stock tip. Browse for Australian stockbroker recommendations. Check your charts and good luck with your share trading!