The sky is falling! The sky is falling! Buy, buy, buy.
I am looking at the doom and gloom in the marketplace and I think about how in some cases people overreact to bad news. I am going to stay away from the stupid pricing in mortgage bonds and focus on Vale, a.k.a. CVRD. Vale owns [...]
Khaleej Times Online: Oman signs MoU with Brazil’s Vale for $1 billion iron ore pellet plant
This makes complete sense. CVRD (Vale) has more and more really fine ore that it has to pelletize. By building this pellet plant, it gets a captive downstream direct-reduced iron market. The plant will work because it will have cheap [...]
Vale is further consolidating Brazil, and it looks interesting. Here’s the story at Reuters.
It’s a decent price, but one wonders if Mineracao Apolo could have gotten a higher one from someone else. Then again, they did not have to pay for exploration expenses.
Nickel trades on the LME; iron ore does not. The underlying value of Vale (aka CVRD) is the stability of its iron ore earnings. That is what makes it a great company. The question I ask is will they succeed in taking the volatility out of the other markets as they further consolidate them. Companies [...]
