+ Watch VALE
on My Watchlist
A leading producer and exporter of iron ore and pellets, Vale has mining operations in 21 countries.
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.
increased revenue from properties in Brazil
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
Extremely low priced at steep discount to BHP and RIO. Stays at 2009 levels while economy feels much better. Strong operational performance. Watch out for the recovery.
I think this is a cyclical that has been punished more than is warranted.
this is a huge company
IMO Iron Ore Bottomed Out And They have byproducts of gold silver platinum copper both precious metals and base metals
This is getting pretty cheap and the cycle will turn up for the miners sooner or later.
As the world economy improves, China's economy will begin to grow again. There economy will demand more commodities like iron ore and aluminum and copper. This should impact the bottom line of Vale and its profits. Hence, over the next five years we should see and increase in Vale's stock prive.
trading at $14.xx and entering upward cycle target $17 12 mos
When global markets turn up this stock will be ready to make huge profits.
As America heads down its socialist path, it will be up the the BRIC countries to drive the global economy. Vale is well positioned to dominate.
Down quite a bit since my pick. Vale itself says it can be profitable with iron ore at $110http://www.menafn.com/9431d1e8-2909-445f-bfc0-fca9531b3e05/DJ-Brazils-Vale-Outlook-for-Iron-Ore-Hasnt-ChangedBought some more at $12,89 catching the falling knife, wouldn't be surprised if stock price goes lower, but I calculate the intrinsic value at $22 based on Graham number (Book $10, profit $2 per share).
I bought this at 12.90 as a S. American mining play, diversifying from SCCO, which has been good. VALE has a lower P/E and debt, though the 3.5% dividend is less attractive. Price is near a year-low, & it has a S&P 4* rating. VALE and SCCO are basically bets on the world economy improving.
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