Brazil offers promising opportunities to generate attractive returns. The country was rich in natural resources that it possesses a strong internal market, it benefits from globalization and the IMF expects for this year economic growth of over 7%.
Berlin (AG) - The experts of "Fuchsbriefe advise" the purchase of Vale's shares (ISIN BRVALEACNPA3 / WKN 897 998).
Brazil offers promising opportunities to generate attractive returns. The country was rich in natural resources that it possesses a strong internal market, it benefits from globalization and the IMF expects for this year economic growth of over 7%.
Vale is in with a market share of well over 30% of the world's leading iron ore. It affects it positively, that almost all the mines in Brazil territory find where wages and taxes by international standards were more moderate.
In the course of recovery in the global economy's current operations, the stock had gained momentum again. Thus, the turnover in the first quarter of 2010 increased by 26% and EPS has improved from 0.18 to 0.23 €. Analysts are forecasting for this year, a rise in profits over the previous year of over 60% and for 2011 they would expect a further rise by 45%. This would result in 2011 earnings per share equivalent of € 1.85, giving a P / E ratio can be inferred from 10.
According to the experts at Fuchsbriefe offers the last correction that took place a good entry opportunity, and they recommended to buy the Vale's share price. The target price may be seen for 22,80 € and a stop should be placed at € 16.15.
