by Travis Johnson, Stock Gumshoe | November 11, 2011 2:24 pm
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Source URL: https://www.stockgumshoe.com/2011/11/catching-up-on-my-brazilian-investments/
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I did take notice back when you first mentioned Cielo and own a nice piece, thanks Travis. A couple of weeks ago I jumped in and picked up SID and BAK which are two nice industrials I have owned in the past. They were down a bit when I bought them at 8.63 (SID) and 16.59 respectively and I like SID — a major steel producer, yielding 8.94% at today’s close, having their own iron mines. With Brazil hosting the 2014 World Soccer Cup and the 2016 Olympics they are going to need a lot of steel. BAK which is producer of chemical compounds used in plastic looked interesting as well so I picked up a bit there also.
Thanks again for your brazilian ideas, Travis. I also like your insights Philip Perlman.
Personally I do not know if I want the emerging middle classes in Brazil go out with plastic cards and buy fast frozen ‘plastic’ foods. Somehow this picture does not seem to be most disirable to me. I do believe in local foods, regionally produced and sold, in small companies and in slow food. But how do i connect that with investing and trying to make a profit?
Perhaps anyone has some ideas or insights?
BFRS is the largest poultry exporter in the world and the second largest meat exporter. 60% of it’s revenue is generated domestically, 40% internationally. I agree with your comments about the price, it is more attractive under $18/share. It’s not a sexy pick, but it could be around $26 in two years, not a bad return for a diversification play in your portfolio.
Key Financials:
Information listed in USD. 1 USD = 1.88 BRL on 10/4/11
Current Price $20.29
Market Cap $14.91 billion
Revenue (12 months ending 6/30/11) $12.91 billion
EPS (Diluted – 12 months ending 6/30/11 ) $0.88
P/E Ratio (price/diluted EPS) 19.15
Price to Book Value 1.92
Long-term Debt to Equity (12 months ending 6/30/11) 34.84%
Current Ratio (12 months ending 6/30/11) 1.72
Dividend Yield 2.10%
Short Interest Shares 7.56 million
Beta 1.10
Travis: Any thoughts about the (new) Brazil Small Cap ETF — EWZS??
Travis: Have you ever looked at the Brazilian steel-maker, COMPANHIA SIDERURGICA NACIONAL (SID)?