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

To: bruwin who wrote (2827)	2/27/2013 2:01:13 PM
From: E_K_S	Read Replies (1) \| Respond to of 4720

Re: VALE It's hard to value the company with all of it's moving parts. The write downs on some of their Brazil assets were huge and I am hoping that is the reason for some of the recent selling. Not sure if one can trust the BV numbers w/ several of their recent acquisitions TBV shows $15.16/share. So the company is selling 20% above TBV. 2012 EPS avg estimate is around $2.00/share. The modified EKS$ calculates at $26.11/share. This suggests that VALE is 44% undervalued. When you do a similar calculation for AAUKY the % undervalued from the modified EKS$ suggests that this company is 67% undervalued. Both have exposure to coal but I am not sure if VALE has any NG assets. The other resource company I used to own was RIO. I plan to add shares to both VALE and AAUKY as I sold some high priced shares several month's ago and it's time to buy them back at these low prices. EKS