Vale SA (VALE), rated a hold in the portfolio, said Monday it had suspended dividend payments and share buybacks as the miner faces spiraling losses over its dam that burst leaving hundreds of people missing and presumed dead in southeast Brazil.
The dam was the size of a 28-story building and it gave way with a loud boom followed by a tidal wave of mining waste that wiped a nearby village away, leaving Brazilian authorities on Sunday still searching for hundreds of missing people
Vale stock lost 8% last Friday and is expected to open very weak this morning as well.
While shares will likely recover at some point, I suspect that the oncoming investigations, litigation and fines will create significant uncertainty for a very long time.
Thus I recommend you sell your shares today (it’s probably best to wait until after the open) and redeploy the funds in stocks with better prospects.