Vale: High Capital Returns & Discounted Valuation

Monty Rakusen/DigitalVision via Getty Images Last October I updated my view on Vale (NYSE:VALE) citing that iron ore prices were likely to remain higher for longer given that its main customer, the Chinese steel sector, was exporting its "over capacity" and maintaining a steady demand for iron ore while the supply was generally balanced. While this has been the case that I believe will continue, the stock price is down 10% (-2% with dividends) worse than its Australian peers, and suggests the market has ful ...