Brazil Small Stocks: Large Economy, But No Small Stocks in Brazil


     
 
 
  October 1, 2011  
  Volume
XIII, Issue 89
 
 

Home Page : www.otcjournal.com

Email Questions or Comments To:
editor@otcjournal.com

To
OTC Journal Members: 


 

Brazil Small Stocks: Large Economy, But No Small Stocks

Did you know Brazil is the 6th largest country in the world, and has the 7th largest economy? In fact, in Q1 of 2011, Brazil had record lows in unemployment and higher wages than ever in the country’s history.

In Q1 of ’11 the Brazilian economy delivered 4.2% GDP growth. Q2 was 3.1%, up .8% over the previous year. Any way you look at it, growth in Brazil is far more robust than in the US which could be sliding into recession. Since their economy is very resource driven, it has slowed a bit with oil prices coming down, but it is still far more robust than the US economy.

In a recent survey of International private equity fund managers, 70% of those managers stated Brazil was one of the five top destinations for the investment of capital.

Brazil’s largest company- Petrobras, claims there are 13 billion barrells of oil and gas trapped in the South Atlantic.

Brazil is also hosting the upcoming World Cup and Summer Olympic Games.

There’s one other interesting factoid about Brazil I’ll bet you didn’t know. There are only about 100 public companies on the Brazilian stock exchange, and one company, Petroleo Brasiliero (NYSE: PBR) generates 50% of the volume on the entire exchange.

Despite all this growth, believe it or not, there are very few Brazilian small cap stocks for investors to choose from. Gafisa SA (NYSE: GFA) and GOL Linas Aereas Intligentes (NYSE: GOL) are the only two I can find.

Over the past 10 years about 600 small and microcap China based companies have found their way to the US markets, but very few from Brazil. Brazilian small cap stocks are a rare breed indeed.

I’m keeping a careful eye out for the inevitable influx of Brazilian small cap stock to the US Markets. It will be the next wave akin to China, and early stage investors could make absolute killings by identifying the right idea.

I have found the right idea. There is one other Brazilian small cap no one knows about. The company is now delivering about $120 million in annual revenues in US dollars, and trading at less than a $20 million market value for one reason only- no one knows about it.

I’ll provide more information in the usual Sunday release, so get ready to do a little reading along with your Sunday paper before the NFL games start this week.

Oh, and BTW- the stock market continues to be quite shaky, so stick with your SSLs on any of the past ideas. We have to live to trade again.

Home Page : www.otcjournal.com

Email Questions or Comments To:

editor@otcjournal.com

 


  Refer
A Friend
 

If you find the OTC Journal informative
and profitable, please forward our newsletter alert service to like-minded
friends and associates who share similar market interests.


  Ensure
Newsletter Delivery
 

To ensure newsletter delivery, you
can add any additional email
addresses you may have to the OTC Journal Member List. Receiving the OTC
Journal Newsletter in multiple locations is the best way of making sure
you don’t miss the next investing or trading opportunity! For web based
email addresses, the OTC Journal recommends @yahoo.com or @aol.com for
timely and reliable email newsletter delivery.

Note: Your email address will
be kept strictly confidential, and will not be shared with any other entity
for any purpose at any time. If you no longer wish to receive the OTC Journal,
simply follow the instructions located at the bottom of every OTC Journal
Newsletter Edition.


Disclaimer
DISCLAIMER

The OTC Journal Newsletter is an
electronic publication committed to providing our readers with useful information
on publicly traded companies. The Newsletter contracts with publicly traded
companies and receives compensation from them in the form of cash and sometimes
restricted securities as payment for publishing information and opinion
about the company and the trading market for their securities. Principals
of the Newsletter may also purchase or sell securities of the companies
in the open market from time to time. The positions that the Newsletter
or its principals maintain in securities of the companies are disclosed
here (click
here
) and should be considered in making an investment decision regarding
these companies securities.  The Newsletter may be deemed to have
a conflict of interest between its open market activity and positions in
these securities and the timing of and opinions expressed in its publications
concerning these companies.  The publications should not be considered
to be independent publications concerning the company.

All statements and opinions expressed
herein are those of the editors and are subject to change without notice.
The Newsletter maintains editorial control over its publications and the
companies profiled therein do not have any editorial rights concerning
the information published about them. A profile, description, or other
mention of a company in the newsletter is neither an offer nor solicitation
of an offer to buy or sell any securities mentioned. While we believe all
sources of information provided by us and contained in our publication
to be accurate and reliable, we cannot and do not guarantee the accuracy
of information we received from third parties.

READERS  ARE ENCOURAGED TO DO
THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED IN
THIS PUBLICATION. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A
HIGH DEGREE OF RISK.

We encourage our readers to invest
carefully and read the investor information available at the web sites
of the Securities and Exchange Commission (“SEC”) at http://www.sec.gov
and/or the National Association of Securities Dealers (“NASD”) at http://www.finra.org.
We also recommend that you read the SEC advisory to investors concerning
Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm.
Readers can review all public filings by companies at the SEC’s EDGAR page.
The NASD has published information on how to invest carefully at its web
site.

The information found in this profile
is protected by the copyright laws of the united states and may not be
copied, or reproduced in any way without the expressed, written consent
of the editors of otcjournal.com.

 

You can unsubscribe
from this list at any time by Clicking
Here
. If you are having difficulty removing yourself or wish to change
your address please go to http://www.otcjournal.com/opt/?email=$subst(‘Recip.EmailAddr’).
 
     

 

One thought on “Brazil Small Stocks: Large Economy, But No Small Stocks in Brazil