Riddle me this: When is it good news when an analyst slashes his price target for a stock by 55%? Answer: When that “reduced” target price still represents a 59% gain. That’s precisely the scenario facing Companhia Vale do Rio Doce (ADR: RIO), the world’s biggest iron-ore producer.
Not much. The world keeps turning. And the world economy keeps falling apart. Here in Australia, shares of port and rail outfit Asciano (AIO) fell off the table after a Citigroup analyst changed his valuation of the company and moved it from “buy” to “sell.” Asciano is down 93% from its all time high and was down nearly 60% yesterday before going into a trading halt.
The jury is still out on whether China’s massive infrastructure-based stimulus package is the best way to rescue the economy. But Martin Hutchinson says it is great news for suppliers of raw materials. He picks 5 companies that will benefit from the injection of cash. Of those, Martin says Brazil’s iron ore producer Vale (ADR: RIO) is the best value buy.
On Monday we featured a bullish piece on Brazil by Money Map Report editor Horacio Marquez. Since then, the iShares MSCI Brazil Index ETF (NYSE:EWZ) he called a “screaming buy” has gained as much as 31%. Here, William Patalon III provides an update on some of the reasons to be investing in Brazil right now.
Horacio Marquez says the credit crisis is giving investors another chance to profit from Brazil’s long-term success story. The country is rich in natural resources, has a solid banking system, and a strong economic outlook. He recommends buying the iShares MSCI Brazil Index (NYSE:EWZ) in increasing increments over the coming 8 weeks.
Brazilian stocks have been pummeled in October’s global market rout. But Martin Hutchinson says this has created a great opportunity for investors. South America’s largest economy still has a robust growth outlook and moderate inflation. These six “bargain basement” stocks are now well worth a look.
The base metals were mostly in the green on Friday. Copper rallied during the pre-dawn hours, sank back below break-even after New York opened, but then rallied again to achieve a rare positive day, finishing at $2.2099/lb., up 9½ cents.
Brazilian metals and mining company Vale (NYSE:RIO) has canceled its iron ore shipments to China until the country’s steelmakers cough up more dough. But China has other ideas. Vale may find its products aren’t as vital as it originally thought, says Stephanie Grimmett.
The resource rich Canadian markets essentially flatlined during Tuesday trading as bank earnings took centre stage.
The base metals were all in the red on Tuesday. Copper was off sharply in the pre-dawn hours, rallied during New York morning trading, but then faded again to finish at $3.4691/lb., down 9 2/3 cents.