Why Vale (VALE) Stock Is Falling Today

NEW YORK (TheStreet) -- Vale (VALE) was falling -1.4% to $13.80 Wednesday after iron ore prices fell due to a falling credit gauge in China.

Iron ore with 62% iron content delivered to Tianjin fell -0.9% to $93.20 a dry ton according to Bloomberg. The new price is the lowest since June 20. The decline comes as China’s measure of new credit fell in July, leading to concerns that demand will slow in the country.

Must read: Warren Buffett's 25 Favorite Stocks

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

TheStreet Ratings team rates VALE SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate VALE SA (VALE) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

Hit the 'Mother Lode' With Vale ADRs