5 Cheap Stocks to Buy According to Billionaire Ken Fisher

2. Vale SA (NYSE:VALE)

Fisher Asset Management’s Stake Value: $486.355 million

Percentage of Fisher Asset Management’s 13F Portfolio: 0.3%

Number of Hedge Fund Holders as of Q3 2021: 27

Stock Price as of December 8, 2021: $13.65

Return since December 8. 2021: -6.5%

Fisher Asset Management held 34 million shares of Vale SA (NYSE:VALE) by the end of Q3 2021, after lowering its stake in the company by 6% during the same quarter. The total value of its current stake is over $486 million and constitutes 0.3% of the fund’s portfolio. Headquartered in Rio de Janeiro, the Brazilian mining company deals with metals such as iron and nickel.

Although Vale SA (NYSE:VALE)’s revenue for Q3 2021 grew by 18% year over year to over $12 billion, it fell short of consensus predictions by $1.3 billion. Similarly, the company’s Q3 EPS of $0.76 missed estimates by $0.47.

Among the 867 elite funds tracked by Insider Monkey, 27 hedge funds reported having stakes in Align Technology, Inc. (NASDAQ:ALGN) at the end of the third quarter worth nearly $2 billion.

The investment management firm Miller Value Partners published its third-quarter 2021 investor letter in which it mentioned Vale SA (NYSE:VALE) and shared insights about the company. Here is what the letter said about Vale SA (NYSE:VALE) in its Q3 2021 investor letter:

“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”