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

To: Spekulatius who wrote (45245)	10/31/2011 1:40:10 PM
From: E_K_S	Read Replies (2) \| Respond to of 78666

Good points on VALE. Barclays cut their price target to $37 from $42.00 today. Vale S.A. (VALE) I am in this one for the long term and believe VALE holds significant core assets. It's not a big position in the portfolio but goes with my theme of holding companies that own "real" assets (ie mineral) which provides protection from debasing of the U.S. dollar. From a recent Seeking Alpha article: ( seekingalpha.com ):'...Vale Entered into a Strategic alliance with Millrock Resources for Copper-Gold deposit exploration in Alaska. As per the terms, Vale will fund Millrock for further research and early-stage exploration. Vale will spend $1 million annually for the first two years of the exploration. On completion of exploration, Vale is entitled to a 65 percent interest if it pays $200,000 to Millrock resources and spends $3.5 million over the next three years for the project development and feasibility studies. Vale also has an option to extend its interest to 75 percent by undertaking the total cost of the project development and implementation.....". Therefore, I get a little more gold exposure with VALE than I do in my largest holding BHP. VALE represent a 0.5% of the portfolio and generates a 2.2% dividend. I will peel off a few shares on any price above $34.00/share and buy more shares below $20.00/share. The 200DMA is $29.10/share and the 50DMA is $24.64/share. ---------------------------------------------------------------------------------------------------- Did you exit out of your Foster Wheeler AG.(NasdaqGS: FWLT) completely? I put in an order to peel off 50% of my Chicago Bridge & Iron Company N(NYSE: CBI) at $39.90/share. That would be a 52wk high. I bought my original lot 6/2010 for $17.83/share and think $39.90/share is at the high end of fair value. finance.yahoo.com It is encouraging that SHAW is shopping around their energy divisions both of these companies have very profitable energy construction divisions. That is the main reason I own them as the energy construction sector (OIL & NG) is one of the fastest growing areas for these companies. McDermott International Inc. (MDR) may actually be a possible value Buy with their disappointing earnings announcement. It looks like it might be a company specific issue with some of their projects coming in at less than expected profits (could be a project specific problem not an industry thing). I have this one on my BUY list. IF my CBI gets sold I may add this one to my group. EKS EKS