Guerilla Stock Trading detected dark pool trades in Vale S.A. $VALE stock on September 9, 2022.
The dark pool trades over the last couple of weeks look like institutional investors are buying the stock. Not only did $VALE stock rise following most of the dark pool orders, but we have the catalyst that iron-ore prices are rising.
Vale downgraded on weakening China momentum at Itau BBA
On August 17, 2022, Itau BBA analyst Daniel Sasson downgraded Vale to Market Perform from Outperform with a price target of $15, down from $20. The company’s cash generation is likey to decline on weakening momentum for China’s steel production, Sasson told investors. The analyst says China’s commitment to its zero-COVID policy has been undermining economic growth, while its property sector hasn’t shown signs of improvement so far. Itau now expects iron ore to average $115 a ton in 2022, down from $125 earlier.
Vale reports Q2 iron ore production up 17% to 74.1 Mt
On July 28, 2022, the company said, “Vale’s Production Report for the second quarter of 2022 was released on Tuesday, July 19th. Iron ore production increased 17% q/q to 74.1 Mt, mainly driven by the Southeastern and Southern Systems’ solid performance into the dry season. Northern System production improved 4% q/q, benefiting from favorable weather seasonality with partial offset by one-off stockpiles homogenization activities in Ponta da Madeira to adjust for moisture levels. As a result of this one-off event, the sale of our Midwestern System and in order to account for greater flexibility in our production due to current market conditions, Vale is revising its annual production guidance for 2022 to 310-320 Mt. The revised guidance is in line with our value over volume philosophy. Nickel production was 24% lower q/q mostly due to scheduled maintenance of our downstream facilities, which was partially offset by strong performance at Onca Puma. Sales were largely in line q/q as inventories built in 1Q22 were sold in 2Q22. Copper production was in line with Q1 as the effect of Sossego SAG mill resumption in early June and stronger performance of Canadian mines were offset by both planned and corrective maintenance at Salobo plant.”
📺 Vale Stock Has An Issue…
📉 Vale S.A $VALE Chart Technical Analysis
Vale S.A. $VALE stock is in a technical downtrend. Long-term indicators support a continuation of the downtrend. The chart pattern is a double bottom reversal. The buying that we are seeing over dark pools may be institutional investors bottom feeding in the stock because it got so cheap.