With discussions on Brazil investment grades at stake, a big burden now is over Brazil stocks, mainly VALE and even heavier on PBR, VALE price reaction will be very dependent on 1Q earnings announcements and dividends. I'm a truly believer VALE, along,with SID are undervalued stocks excellent opportunities for value investors 12 months time frame, PBR the same but on this one reaction will probably occur in the beginning of 2015, lots of value to be capture if one has stomach and guts. Target for VALE is 22.00. IMHO
VALE is much more a China play than Brazil, the more the BR currency devalues, the better it is for VALE that has the majority of its income streams tied up to dollar. Thus same to say, BR devalues, VALE costs which are held in BR currency goes down in dollar basis and sales go up, this is the best of the two worlds, ADR when translated to dollar suffer some but in my opinion the overall impact is positive, if China and iron ore prices continue to go up.
VALE at present VALE is extremely under appreciated, I remember I bought at 22 and sold at 30, it is now hovering 14. Anyway, still the question is China and iron ore prices, in BR the issues are Income Tax ,me till some in dispute but the majority of this hanging left behind by a deal with government, currency and some political aspects of Brazil economy. If I'm not mistaken Yahoo has a target of 22, please check that.
If Brazil is downgraded to BBB-, VALE should be much less affected than for instance PBR, nonetheless I would expect still some impact initially and after some time a recovery.
I'm long on VALE, just took a long position recently and see VALE as a good value play opportunity in the middle of this so over appreciated market. Other BR play I also like is SID, wonderful dividends, and with some run to go. Rgs
I'm long and a believer MNKD will announce a partnership some point in time.
Would appreciate some thoughtful comments on why it is taking so long ? And if most of you believe the partnership would come before or after FDA approval ... Also what about the 74 day answer when it would come ? Definitely, going alone would be in my opinion a disaster once it would require lots of money and a very slow ramp up ...
Any bullish comments are welcome .... Best