Posts Tagged S.A.

CR Capital Advisors has recommend clients build and build and build positions in Vale, SA. This month alone our preferred ADR saw intramonth volatility of up to 30%. In April, it almost hit 30 and in May it almost hit 20. The share price was up almost 8.5% yesterday. The price sits at 23.27 USD. The prestigious Brazilian investment bank, Pactual, just issued a buy recommendation and reminded investors that their earnings are set to increase by a staggering 129 percent this quarter to $6.4 billion and another 8% to $6.9 billion in the third quarter. Pactual reiterated their price estimate of $31 for the preferred ADR´s.

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I just finished speaking with the investor relations department of VALE, S.A., the Brazilian mining giant. We’ll visit operations this year. The rising price of iron ore is not the only reason why we believe in the long term prospects of this company. It is an excellent institutions with superb corporate governance. They are strategically savvy and aggressive. Banco Itau Unibanco is like a cruise ship being lifted through the rising tide of the Panama Canal. They are destined to succeed because of the expanding credit environment in Brazil. AKBANK is dominating the huge Turkish market (Turkey has 72 million people). AKBANK is cheap right now too. Build, hold, build, hold and aggressively buy on dips with the guts to see these companies through the long run.

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Emerging Market Equity Experts

We update everything important that occurs in the world of the Brazilian mining giant, Vale, S.A. , because it is an important stock in our capital appreciation strategy. We strongly recommend that our clients build significant postions in this excellent company. But we are also watching the politics around it. We think this is just political grandstanding, but we are watching.

SAO PAULO, Sept 16 (Reuters) – Brazilian Finance Minister Guido Mantega told Valor Economico in an interview published on Wednesday that mining company Vale (VALE5.SA)(VALE.N) has to invest more in steel and other domestic industrial projects and rely less on imports for supplies to reaffirm its commitment to the country.
Mantega’s remarks come as Vale, a former state company, became a target of harsh government criticism in recent months following efforts by Chief Executive Roger Agnelli to cushion the company from the impact of the global economic slump.

Mantega told Valor that President Luiz Inacio Lula da Silva “lashed out” at Vale’s decision to fire 100 workers in Brazil as well as decisions to postpone investments and purchase about $2 billion worth of Chinese cargo ships and other capital goods.

“Vale has been proposing a series of projects to add value (in Brazil). It is an exporter, therefore it pays little in taxes,” Mantega told the newspaper. “The president’s discomfort came from their decision to delay the projects.”

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN168974020090916
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Wealth Management

CR Capital Advisors believes in the long term prospects of this company. The disappointing profits haven’t changed todays stock ADR price of around 20. Remember the 52wk high is 27 bucks and 52 week low around 9. This is a perfect example of the opportunities that arise to lower our average price per share as we pick up more shares in a company that is major stakeholder in a fast growing economy. If you are a shareholder of VALE, please read the Financial Times article below. Note, ”Our shipments to China reached another all-time high quarterly figure, totaling 35.611 million metric tons, representing 66.2 percent of total (iron) shipments,” the company said.

http://www.ft.com/cms/s/0/0a6e5e18-7cbe-11de-a7bf-00144feabdc0.html

www.crinvestmentadvisors.com