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Sell earn and cry strategy: I sold 30 RIO Companhia Vale do Rio Doce shares February 15, 2007

Posted by deminvest in growth stock, investment, my free stock, RIO Companhia Vale do Rio Doce, stock I own, stock ratios, stocks.

RIO Companhia Vale do Rio Doce is a South American metal mining company whose stock, for some reason, went up 40% from my buy price.

Metal Mine I have a strategy that makes me sell enough stock to get my capital back when a stock reaches 40% gain. That is why I sold 30 RIO shares at 36,32 USD each, cashing USD 1089,6. I had bought 42 RIO on February 6 2006 for 1039, so I got back my money plus trading expenses and I still have 12 RIO for FREE.

Why did I talk about “some reason”? Because this stock went up 40% even though there is nothing rally great with it. I actually looked into my past posts. I did not find any explanation of why I bought Companhia Vale do Rio Doce in the first place. I could not find this info simply because I had bought RIO before starting this Blog.

But now let’s see look at RIO’s numbers to see the numbers of this company than went up 40% in a year :

P/E = 14.11, not cheap.

Forward P/E (fye=full year ending 31-Dec-07): 9.3. That is not bad and shows expected future growth

Qtrly Revenue Growth (yoy=year on year= this year compared to last year):27.50% … Actually not bad…

Qtrly Earnings Growth (yoy):46.50%… Pretty good

Debt – Cash = 3 B USD, not much for a company that sells 16 B USD.

Forward Annual Dividend Yield5: 1.30%

So basically RIO is a good company, not a star like PCU but still fine enough to deliver me a 40% gain 🙂


1. deminvest - February 15, 2007

This time, before selling, I asked our friend Gene for technical analisys to help me find the best timing for selling. His Tech Analisys for RIO is really interesting:


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