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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (42986)	6/17/2011 10:15:42 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78753

Vale - seems too cheap there, I acknowledge the problems in Brasil with respect to the new government in Brazil but 5.5x earnings is just to cheap to pass up. I bought a tiny starter position here, as I expect more buying opportunities. The overvaluation of the Real should already be baked in the earnings forecasts and should not be an issue. Vale sells their product allover the world denominated in US$. So if the Real falls, their costs will fall and with everything being equal, their earnings (measured in US$) should rise. A falling real will be a problem for those holding Brazilian financial stocks or those that are solely playing the Brazilian domestic market, but not for exporters.