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Why Vale Is Poised to Bounce Back

By Brian D. Pacampara, CFA - Apr 11, 2013 at 10:55AM

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian mining giant Vale (VALE 2.93%) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Vale and see what CAPS investors are saying about the stock right now.

Vale facts

Headquarters (founded)

Rio de Janeiro, Brazil (1942)

Market Cap

$91.6 billion

Industry

Steel

Trailing-12-Month Revenue

Industrial metals and minerals

Management

CEO Murilo Pinto De Oliveira Ferreira (since 2011)

CFO Luciano Siani Pires (since 2012)

Return on Equity (average, past 3 years)

20.8%

Cash/Debt

$6.4 billion / $33.2 billion

Dividend Yield

4.5%

Competitors

BHP Billiton

Cliffs Natural Resources

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 6,575 members who have rated Vale believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, dgilber1, succinctly summed up the Vale opportunity for our community:

This large Brazilian company deals in mining and exporting iron ore, manganese, nickel, copper, potassium, phosphate, and nitrogen. China has a growing need for steel and has good relations with Brazil. Also, as the value of the dollar declines, commodities tend to increase in value.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Vale S.A. Stock Quote
Vale S.A.
VALE
$17.21 (2.93%) $0.49

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