Companhia Vale Do Rio Doce  (RIO) Trade Now »     Rate RIO  -  Discuss RIO  -  Add to Watch List        

Filed under: China, Middle East, U.S. Steel (X), BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP), Commodities, Stocks to Buy, POSCO (PKX)

BUY: Companhia Vale do Rio <o:p> </o:p>

Doce (nyse: RIO) <o:p> </o:p>

Companhia Vale do Rio Doce is the world's <o:p> </o:p>

largest producer of iron ore, and a top player in <o:p> </o:p>

coal, nickel and other base metals. It holds <o:p> </o:p>

exploration claims that cover 24 million acres <o:p> </o:p>

in Brazil and 9.8 million acres outside Brazil. <o:p> </o:p>

Companhia Vale do Rio Doce will seek to raise about $15 billion in the biggest sale ever by a Brazilian company. The share offering from the world’s largest iron-ore producer is set to be priced on Wednesday.

Bloomberg News reported that Vale will price the 256.9 million common shares and 164.4 million preferred shares on July 16, and the stock will start trading in Brazil and abroad two days later.

Bank of America (BAC), Citigroup (C), Ambac (ABK): The Dow is "hideous," says Cramer and the financials are to blame. Mutual funds who thought they were bottom fishing are now panic-selling, sending the financials down.

Gushan Environmental Energy (GU): Cramer says the Chinese need alternative energy more than we do, and recommends GU which may have some new innovations.

RIO Market Data

By Jason Simpkins

When it comes to the worldwide metals market, gold may get all of the attention but other, more durable, metals such as steel and iron have proved to be much more profitable. For instance, the price of gold is actually down 2% from mid-January, but steel prices are 50% higher.

"I believe the #1 rule for making money in the next decade is to get long whatever the Chinese are buying," says Tony Sagami in the Asia Stock Alert.

"China will need to consume an unprecedented amount of natural resources to fuel its red-hot economy," says the advisor who offers his speculations as to the most likely takeover candidates in three areas -- energy, metals and food.

"There's no doubt in my mind that China is on a buying spree. And I'm not just talking about oil, either. Fact is, the Chinese have a ravenous appetite for virtually all commodities.

Filed under: China, Market matters, U.S. Steel (X), United Technologies (UTX), BHP Billiton Ltd ADR (BHP), Freep't McMoRan Copper (FCX), Commodities, Stocks to Buy, Cramer on BloggingStocks

Filed under: International markets, China, Brazil, Newsletters, Freep't McMoRan Copper (FCX), Commodities, Stocks to Buy

"There's no doubt about it: vital resources are in a bull market of gigantic proportions," note Yiannis Mostrous and Roger Conrad.

"The co-editors of Vital Resource Investor caution that "no market moves in a straight line, and in commodities, the action is often extremely violent." However, for long-term investors, they offer some favorites in iron ore, aluminum and copper.

Two words come to mind with Brazil's iron company, Vale: pricing power.

Like MOS, Vale enjoys significant pricing power for its iron.  A notable instance is the latest negotation by Vale to increase the price they charge China for iron ore by 65%.  And they're increasing output and export to China this year.  If they can increase their Big Mac from $1 to $1.65 and China wants to buy more of 'em, I like the game Vale is playing.