- stable business model
- cash equivalents up 200% last two years
- current assets up 90%
- over the same time frame total debt has barely changed
-> take note however that unusual expense is up, surpassing $26 million last quarter after being nearly non-existant in previous periods. watchout for mine writedowns.
Vale SA (VALE) - This company is trading at a 52-week low which is what caught my attention.
- maintains high quality mines around the world - diversified exposure makes it less risky (diversified companies). Vale is a hortizontally and vertically integrated company meaning that it owns the infrastructure and controls key logistic services used to transport mined materials.
Potash, fertilizers are staples in farming - when basic metals such as nickel and copper aren't performing you can always rely on the sale of material needed to grow food.
Over the last year, Vale (nyse:VALE) is down 58%, compared to only 23% for Rio Tinto (nyse:RIO) and 30% for BHP Billiton (BHP) despite similar circumstances affecting all three companies - don't see why Vale stock should continue to be punished.
Rio Tinto - Mega project Oyu Tolgoi is entering a second developmental phase (first one already reached critical production 733,700 tonnes last year (metal sales +$1.6 billion).
The second phase is worth $6.5b but calls for $4b in project financing for construction.
Safe stock pick of the month : Magna International (nyse:MGA)Thanks to low oil prices and the cheap Canadian dollar Magna has gained a competitive edge - latest quarterly revenue was up $220 million (+2.4%) despite a 10% decline in vehicle sales. Net earnings were also up to $509 million quarterly (+11.1%) or $2.44 a share. on the year the bottom line was even better (per share $6.76->$8.69).
Because of these results, quarterly dividend was upped to 44 cents (16%).
Take advantage of these results before the company goes through with a planned stock split later next quarter.