Wednesday, July 28, 2010

Top Brazil Stocks

Of the four BRIC countries, Brazil seems to be the country that is in the strongest shape and has the greatest potential, over Russia, India, and China. Here are some facts about Brazil:

1. Brazil is the fifth largest country in the world by both population and area

2. It has the ninth highest gross domestic product on a purchasing power parity basis, according to the International Monetary Fund.

3. It has the world's eighth largest economy at market exchange rates.

4. It is the largest economy in Latin America.

5. It is the largest producer of ethanol in the world, which comes from sugarcane.

6. The country's major exports include aircraft, automobiles, ethanol, electrical equipment, textiles, footwear, iron ore, steel, coffee, orange juice, soybeans and corned beef.

7. It is the world's tenth largest energy consumer.

8. Brazil is a major producer of energy from renewable sources, primarily hydroelectricity and ethanol.

So what Brazilian stocks should you invest in? One resource is the book I wrote Investing in Brazil Stocks: Get Rich from the South American Giant. Another way is to check out the list of Brazil stocks at WallStreetNewsNetwork.com. Here are some from the list.

If you are looking for a petrochemical company, there is Braskem S.A. (BAK), the largest thermoplastics producer in Brazil. The stock has a PE of 9 and a forward PE of 19.

With growth in the rebuilding of infrastructure, the demand for steel should increase, and should benefit Companhia Siderurgica Nacional (SID), the second largest Brazilian steel manufacturer. The stock has a PE of 16, a forward PE of 8, and a yield, based on historical payments, of 7%.

VAle (VALE) is the second largest mining company in the world and the largest logistics operator in Brazil. The stock has a PE of 26, a forward PE of 7, and a yield of 1.6%.

Banco Itau Holding Financeira S.A. (ITUB) is the second largest bank in Brazil, and also owns the investment company, Investimentos Itau. The stock has a PE of 16, and a forward PE of 12. It pays a small yield of 0.4%.

If you like beer, you'll love Companhia de Bebidas Das Americas (ABV) also known as AMBEV, which distributes beer, soft drinks sport drinks, and bottled water. The stock has a forward PE of 17.

CPFL Energia S.A. (CPL) is one of the largest electrical utilities in Brazil with a PE of 14, and a forward PE of 12. The yield is 6.7% based on historical dividend payments.

To see a list of all Brazilian stocks that trade in the US, check outWallStreetNewsNetwork.com or the book Investing in Brazil Stocks.

Author does not own any of the above. However, he wrote the above book.

By Stockerblog.com

2 comments:

Unknown said...

Good to know this,,,,,,

translucent_eye said...

One thing to keep in mind is that with the 2016 Olympics coming to Brazil, there will be an infrastructure boom (buildings, roads, etc) that will happen. And the plethora of natural resources in Brazil is currently hampered by the lack of good roads to move these to the coast for export. As the infrastructure improves the profits will go up for these companies, which are two reasons that I want to be overweight in Brazil when it comes to my BRIC investments in the short term.