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Rio Tinto - RTP - close: 123.33 chg: +1.33 stop: 119.99

Company Description:
Rio Tinto is a world leader in finding, mining and processing the earth's mineral resources. The Group's worldwide operations supply essential minerals and metals that help to meet global needs and contribute to improvements in living standards. (source: company website)

Why We Like It:
Now that crude oil is soaring to $60.00 a barrel there is going to be increased interest in alternative forms of energy. One alternative could be nuclear energy. RTP is a mining company that seems to come up rather quickly when discussing who would benefit from any sort of build out of nuclear energy plants in the U.S. It is true that even if the government were to green light a new nuclear plant today it would take years to build so we're not talking about any short-term boost for RTP's revenues. What we are talking about is the bounce in today's share price. RTP broke out from a bearish trend of lower highs a couple of weeks ago. Since then the rally has failed at the $130.00 level but now it appears that traders are buying the dip near its six-week trendline of support (see chart). We would consider this a more aggressive, higher-risk play but we're willing to speculate that RTP could rally back towards the $130.00 level. We'll suggest positions at current levels. More conservative traders may want to wait for confirmation of today's bounce with a move over $124.00 or $124.50. 

Suggested Options:
We are suggesting the August calls. Option volume and open interest is very low. Place your trade carefully.

BUY CALL AUG 120.00 RTP-HD OI= 0 current ask $7.20
BUY CALL AUG 125.00 RTP-HE OI= 0 current ask $4.20
BUY CALL AUG 130.00 RTP-HF OI=10 current ask $2.25

Picked on June 27 at $123.33
Change since picked: + 0.00
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 160 thousand 

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