I am a novice when it comes to VALE, I made my posts and my money trading CLF when it comes to Iron Ore miners. In my opinion as long as you respect that these mining stocks are pump and dumps, you can avoid being killed by the market.
I dont disagree with you, but where are the cheerleaders, it is like no one knows a reason why to buy this stock... Maybe everyone knows it is a dog.
Well I said some time ago they have to scrap it when CEO said he wanted to recommend to the board to keep the dividend and the share price rallied on that news... Always short unreasonable hope and you come out on top most time.
"While Casablanca called for Cliffs to “immediately double its dividend” in January, analysts now believe the company should cut or scrap entirely its 15-cent a quarter dividend and pay down debt."
Companies are trying to rebuy their debt across the board because it is trading at discounts and so on, especially in the coal industry. It is a sign that higher interest rates are coming next year by the Fed in my opinion, pretty sure about that.
Did you see what Cloud Peak Energy did? They announced an offering on the 19th after the close, the stock sold of today on the 20th and then they withdrew the offering after the close. That is insane...
I have never seen such blatant deception of the general public by a public company's management to announce a public offering and then withdraw it 24hours later after 3m+ shares have traded 1 day before the CEO goes out to promote the company at an investor conference... This is not good for PR, how can you trust management that makes decisions changing their minds on a daily basis?
No I think you are wrong, they exchanged $12m of shares +5.2m cash vs $52m in high yielding debt. That is "value creation" technically speak and should improve the equity side, but they are losing so much cash in their operations each quarter, in the long run it wont help, i believe they are finished.
For me, this signals that the debtholders who arranged this deal believe this also to be true and therefore are trying to cash out as much as they still can without management at WLT looking like they were doing someone a favor.
They question becomes next year, whether WLT will go bankrupt (BK) and keep operating like PCX and JRCC did after their BKs. These failing companies not being let to go out of buisness is really what is keeping competition up and pricing down so that ANR, ACI and the other coal miners cant see improvements in their margins for their shareholders to get some returns too.
That is what I think, the rich must be stuck in utilities and like low resource prices to keep the money flowing their way...
We cant beat these guys unfortunately...