Where do you see Vale's stock price, when do you think they turn things around. I see they put off splitting off their metals division toward later in the year. I believe the company will see at least $15-$20 per share again.
What is also interesting is how Goldman Sachs just came out with a story last week saying the dollar will start to fall and to leave equities which need a strong dollar to climb. Once the US dollar starts its downward spiral Vale will prosper.
It is never a bad idea to take profits, especially in this environment. As I said in an earlier post we are far from being out of the woods. I am not sure if we have seen the low in i/o prices yet. I will say however, when things turn and they eventually will we will go higher than $10. In seeing how bad the quarter was and how not much has really changed look how far the stock has rallied. Imagine if and when we finally get some good news. I think we see $15-20 again. Good Luck!
With BHP & Rio cutting or not making their numbers it was an easy call for Vale. They were probably just waiting and hoping for the other 2 to blink. Good Luck Board!
Walmart is building 115 new stores in China which will employ over 30,000 employees, they will need I/o to do that, in the short run things look bleak, longer term Vale will be fine.
I think longer term you are looking at a$15-$20 stock, I know it sounds wild at these levels, but this depressed I/o stage is not going to stay like this forever. Good Luck!
With very low I/o prices and a strong US dollar I can't believe it will be good. Hoping for the best, good luck!
Do not forget the pullback by BHP also, this helped. The market has been acting like iron ore is no longer needed for infrastructure. Just like $190 was ridiculous to the upside, the $30's may be the same in reverse. What has intrigued me the most is the way Vale has rallied in just 4 days. I said in an earlier post we are nowhere out of the woods by any means, but once the price of i/o stabilizes it gives reassurance to some of us here who bought in at a higher price that we will indeed own a stock which will be back at higher prices again. Good Luck.
Earnings are next Thursday, and will be bad, but I am hoping mgmt. has some positives to say about the future. By the way, if we can make it to $8.00 by earnings and hold it, then upgrades will follow.
This price target flip flops back and forth every other day, it means nothing. One day it is $7 and change and the next its $12 or $13. The surge in stock price and volume over the last 3 days is an indication of how oversold and undervalued this stock is. I am not saying we are out of the woods by any stretch, but my hope is that the worst is over. Good Luck!
The surge in my opinion has more to do with the rally in I/o over the last few days, rather than the record production by Vale. We are far from being out of the woods, however $47.00 for the price of I/o has been way overdone to the downside and the recent rally in I/o is proving that. RIO and BHP are not the only 2 reducing their cost. I just read something this morning where analysts are now saying the price of I/o should stabilize somewhere in the $60-65 range, sure just in time for the rally right?
Things have a way of turning fast (especially in the commodity world). By the time the average person realizes it they have missed it. The current p/e means nothing. You want to look at p/e's, look at AMZN, NFLX, etc., Vale has been under siege due to the weak real and the strong us dollar, that will eventually change. The strong US dollar will not last forever. Good Luck Board!