VALE is one of the very heavily traded stock on NYSE day after day, there was a positive news on earning and yet the stock dropped like a rock still analysts are dead silent... Anyone has an insight on this move... ?
VALE is controlled by hedge funds, who ran it up to $21.88 nearly a year ago, and have made fortunes by shorting the stock and selling it in 20 share lots since then. Look at latest short numbers--about 75 million shares--and every one of them gained about 5% this morning. Compare that number to the total shares traded and you will see how the hustle works.
Yes, earnings were great, prospects are great for VALE today, but this wonderful company is being held hostage by the hedgies and the high speed traders. The share price does not reflect the value of the company, and will not do so until the shorts and the hedge funds decide to cover their shorts, and then rape somebody else. Cheers,