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Vale S.A. Message Board

  • lc736 lc736 Jun 25, 2013 11:19 AM Flag

    Single digits in the future

    Total Debt minus Cash comes to 26B in Total Debt. Currently paying 5.5% dividend but has a payout ratio of 108% means the dividend is unsustainable. Commodity prices and demand are falling and will likely fall further as China economy slows. The Brazilian economy is faltering and large street protests. A socialist president which will likely do even more of a money-grab from domestic companies like Vale makes for a very bad situation for Vale.
    Even with a dividend cut Vale’s in world of hurt. And when they cut the dividend the stock will plunge. Single digits is in the future.

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