I was doing some research this afternoon and noticed that both of these have been equally punished in 2013. Anyone have any explanations for that? I'm surprised Blackberry is still even listed.
I think you need to see a psychologist... you appear to be experiencing delusions. How do you feel about VALE moving over 15.55 today???
Agreed, the numbers look very good and the div appears to be completely safe. That frightens me about this stock. We know the US stock market is rigged and money managers and hedge funds have tremendously more info than the retail market. The volume has been abnormally high over the past 30-40 days, I don't see this trend with BHP or RIO. The short interest in VALE has spiked. The last time I owned a stock like this it was a Chinese company cooking their books.
A positive note... VALE is holding up better than PBR today but not as well as RIO. I guess Brazil and Iron Ore are double wammies. The dividend will NOT be cut... so it should be difficult for shorts to hold VALE down.
Does anyone think that Vale might intentionally flood the market and push down the price of iron ore to eliminate the smaller guys? Based on estimates VALE has the lowest production cost and can survive MUCH lower prices. If a good chunk of the newer small guys die off over the next year the industry will consolidate as an oligopoly. The remaining players will control the supply and control iron ore prices ONCE AGAIN... and eventually rule the world. Thoughts???
The market always over moves then corrects... that is the way it works. Right now Miners and VALE are bleeding, sharks are all rushing in trying to get a piece of the action. Electronic trading, late shorts, Fund withdrawals, long's panic... all these push it deep into oversold territory. Investing has more to do with anticipating market movements than fundamentals... sadly :(
The last time I considered selling there was a 5% pop the next day. I think we longs will be holding this booger for awhile. There is soooo much negativity in the media right now, though analysts are bullish. I expect VALE is going lower until earnings.
Worthless??? This dispute has been ongoing for years. A worst-case scenario will cost vale about $15 billion. Brazil is not going to do anything to significantly harm VALE. The expectation is that the court will side with Vale... though don't expect a resolution anytime soon.
Yeah, Analysts and Media all seem to be trying to pump VALE, but the market isn't listening. It seems crazy to me that VALE is almost 20% below the lowest target price and not ONE analyst is adjusting their target... I wonder why that is. Regardless, at this valuation it is a strong buy.
It is a very ugly chart. How arrogant for any long to think he jumped in at the right time, eh? I'm a long not because of the chart and a play of catching a knife... but because of the valuation. The dividend is secure, the revenue is attractive, and margins are good. Aside from the uncertainty about iron ore prices next year, there isn't much danger here. It seems like worst-case scenario is priced in right now. Even at $100 for iron, VALE is still profitable and still able to maintain the current dividend.
Sentiment: Strong Buy
Hmmmm.... I'm confused at what you're trying to say. Are you trying to say that it is bad to follow analyst recommendations or are you saying you're a contrarian?
Yes, and Naked shorts create phantom dividends. That's why dividend stocks tend to attract less short interest... GME is a perfect example. Since GME upped a sizable dividend the short interest fell from 50% to around 30%
This is a question for your broker... some will post negative dividends and others will post it differently. The cash will flow for each position... 2 divs and one -div.
September 2012 iron ore prices bottomed at $86 and VALE fell into the mid $15 range. Today iron ore is hovering around $110 and VALE is hitting new 52 week lows in free-fall. Any explanations?