The vast majority of the portfolios I follow have one asset in common: Vale do Rio Doce.
Therefore, it is important to keep two considerations in mind whenever investing in Vale do Rio Doce.
The first consideration is that the company is controlled by the Brazilian government, which can (and should) have other concerns that transcend just delivering value to shareholders , also prioritizing the benefit to Brazilian society.
The second consideration lies in the need to carry out a projection of the price of iron ore , since the correlation between this commodity and the value of Vale's shares is too significant to be disregarded.
As we observed, the data reveal a P-Value very close to zero, indicating that the independent variable is statistically significant . Furthermore, the independent variable explains 84.16% of the movement in the company's share price, proving its importance.
That's fine, but how can knowing this boost shareholder gains?
With this, we can say that, above all, it is important for the company to somehow carry out the iron ore forecast . This will help you understand where profits, dividends and, consequently, the company's price can go. If you can't make this forecast , allow me to give you a tip: look at data on nations' GDP and consumption in tons of this commodity.
If the controlling shareholders carry out these studies diligently, they can carry out operations, buying or selling contracts for this commodity, and thus protect themselves without the need for possible divestment of their stake in Vale do Rio Doce.
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As we can see, the data shows a P value very close to zero, which indicates that the independent variable is statistically significant, and that the independent variable explains 80% of the movement in the company's share price.
With this we can say that, above all, it is important for the company to somehow carry out the iron ore forexcast, this will help to understand where the profit, dividends and consequently the company's price can reach. If Bradespar is unable to achieve this forecast, let me give you a tip, look at GDP data from nations, and consume tons of this commodity. With this we will have an idea of what could happen.
If Abradespar carries out these studies with some effort, it can carry out operations, buying or selling futures contracts for this commodity and thereby protecting itself without the need to sell its investment in Vale do Rio Doce.
We've come this far, but what about the dollar forecast? Contact Wagner Geremia.