Replies to post #165 on Vale S. A. (VALE)

[DewDiligence]

This places a huge overhang on investing.

I wouldn’t describe it an overhang insofar as the valuation has already been dinged for this liability. On the other hand, if VALE prevails in the Supreme Court and does not have to pay the back taxes, there will presumably be a non-trivial upside.

[DewDiligence]

VALE will appeal $5.6B tax ruling (as expected):

http://www.sec.gov/Archives/edgar/data/917851/000110465912004005/a12-3359_26k.htm

Good news: The $5.6B tax assessment being appealed is considerably less than the $14B liability described in #msg-70320171.