I don't understand why several other mining companies are moving up,that are in the same business,and Vale is still lagging in their share price.The stock market is finally up over 237 points and it is has not had a positive impact! What is the problem here? The company has raised it's dividend,has cut costs,and I believe they are going to report excellent earnings for the current quarter!!
It is remarkable that the stock is as high as it is. The dividend is .75/share but earnings are only .45/share. That clearly is not sustainable. The current PE for vale is 34 and iron miners are usually get a PE of 10-12. This quarter all the iron miners will announce big earnings. But, there is a tremendous amount of new capacity coming online from VALE, RIO, Fortesque and BHP and that capacity is going to be sold into a market with flat demand. China is about to start their own iron futures in an effort to impact the price of iron ore. You should feel lucky the price is where it is.............and you should sell.
I believe that it is related to Brazil. PBR is also only up about 1%.. Remember that Vale still has a huge potential tax liability associated with earnings from foreign subsidiaries hanging over its head