+ Watch VALE
on My Watchlist
A leading producer and exporter of iron ore and pellets, Vale has mining operations in 21 countries.
I don't the metals complex will rebound for in the near future. Therefore, I would not buy FCX
time to recover.
The stock is too cheap. There is lot of value and at this price I am more than willing to hold this stock with anticipation that iron ore prices will eventually climb back.
I think VALE is entering a rough patch with Iron ore prices at an all time low and China lowering demand. However, there always a need to develop, this will comeback nicely if you're willing to play the long game
Don't be fooled by Brazil. This is a Marxist run country, and the day of reckoning has yet to arrive. Dilma's first term has been extended by the electorate, and Brazilians will be dealing with more than a collapse of their national soccer team. Brazil's only "promise" of the future is more of the same, where national resources can't hide the fact that about 90% of roads are covered in mud.
strong company will grow eps as demand moves up slightly
Dividend paying stock, Iron ore prices may rebound, China posted better than normal manufacturing PMI.
USDollar inflation will lead to higher prices for core commodities priced in USDs, which will ramp up earnings.
Prices of iron are expected to drop down
I know its been a dog as of late, but you gotta love the discount the market is giving this little nugget. I'm a value investor at heart and I've spent the past two months watching this poor dog just keep on getting kicked by the market. I thought for sure I was gonna miss out on my opportunity for a cheap valued buy into the minerals/mining sector when I started keeping an eye on VALE a few months ago, but the stock has stayed pretty much flat since I laid my eyes on it and I'm convinced it's time to pull the trigger. Demand for VALE's minerals may be in the doldrums at present but as far as I know China and India have yet to disappear and I know for a fact that these two countries have a very long way to go (and plenty of mineral demand remaining) if they ever wish to raise another billion people out of poverty and into the burgeoning middle classes. Not that VALE is the entire equation but I know that its only a matter of time before it picks up again. If you wanna play it safe, buy some BHP and some peace of mind. As for me, I'm young enough that I don't need a multi-billion market cap mining conglomerate to tuck me in a night. I like to live on the wild side. If you ever plan on beating the market, I suggest you start taking some risks.
election coming up in Brazil...China cooked the books? This stock is broken.
same same but different
In a presently depressed industry. Probably the low cost producer in the iron ore industry. Likelihood of a significant recovery in the iron industry sometime in the next five years.
Not to state the obvious, but valuation still matters regardless of the traditional (stock, bond) or alternative (real estate, PE etc.) asset classes when Fools like us invest, While different metrics are used for valuation within the vast stock universe, one I particularly like for a Mining company like VALE (# 1 in global iron ore and # 2 global in Nickel) is the sempiternal EV/EBITDA which: (1) in absolute terms trades at 4.3 times (i.e. CHEAP) and in relative ones to its closest competitor, Rio, trades at a 35% discount which can only lead to arbitrage (i.e. in favor of VALE) by funds investing in this sector. If this metric does not convince you (it objectively should) then take a look at the 2014 Forward PE... which is 8... Either way, it's a BUY based on valuation, particularly in Q1 while Iron ore prices are still expected to hover over $130/ton and not go below $125 on average for 2014.
A lot of negative news is built in to current price which limits the downside from here, at the same time, small pieces of good news have the potential to move the share price up quickly.
steady iron ore prices
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