Scholastic and OMNOVA Solutions Down on Earnings Reports; Vale SA, Mosaic, and Wal-Mart in Spotlight

Traders are watching Vale SA (ADR) (NYSE:VALE) and Mosaic Co (NYSE:MOS) after Reuters reported that the Brazilian iron ore producer could announce a partial sale of its fertilizer and phosphate division to Mosaic. According to the article, Mosaic would be acquiring the assets in question under a ‘very accretive multiple’, and Vale would be getting as much as $3 billion for perhaps 75% of those assets to reduce its debt/fortify its balance sheet. Vale shares have gained 66% year-to-date. The number of funds tracked by us with holdings in Vale SA (ADR) (NYSE:VALE) and Mosaic Co (NYSE:MOS) fell by two in each stock quarter-over-quarter to 24 and 19, respectively, at the end of June.

Last but not least, Wal-Mart Stores, Inc. (NYSE:WMT) received some bad news after a U.S. judge ruled that the retail giant will have to face a class action lawsuit in relation to alleged bribery at the company’s Mexican division. Under the lawsuit, Wal-Mart would have to defend against the allegation that it defrauded investors by hiding the fact that its Mexican division was allegedly bribing Mexican officials to grow faster. Wal-Mart doesn’t believe the class action lawsuit is appropriate and may appeal. Warren Buffett’s Berkshire Hathaway cut its stake in Wal-Mart Stores, Inc. (NYSE:WMT) by 28% in the second quarter to just over 40 million shares at the end of the second quarter.

Disclosure: none