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Any americans investing in Brazil?


matjone

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Started looking at ITUB , BSBR and also just Latin America in general - AMX, and banks in Chile - apparently they are the world's safest , like Canadian banks.

 

I've only bought Oi S.A. (OIBR) as it looked cheap and the Brazil currency looked cheap based on what I think should be the best of BRIC economies the next 10 years. 

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You have to be careful with the Brazil as well as the Russian P/Es as indexes are dominated by either oil & gas companies, mining companies or steel companies.  I have invested in OIBR as it is a turnaround with a smart capital allocator at the helm.  I have started to look at other firms but most of the large conglomerates in Brazil are privately held with a few subsidiaries traded on the stock exchange.

 

Packer

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another one might be Brazil Fast Food Corps (BOBS) - this company is quite small and there are so few shares the liquidity is very low....  I looked thinking I'd like to get some shares but did not because it seemed difficult to get them.

 

the company had some reporting issues - seemed minor

 

they also delisted themsevles from NASDAQ after a recent acquisition - not sure why though

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I've been watching HRT Oil & Gas (HRTPY, HRTP3) for some time. They are, at this point, a Graham style "cigar butt", trading way below cash on B/S. May take a position in the next few weeks.

 

Well below cash. If you notice the volatility in the US ADRs far outstrip that of the main listing, so often there's a significant spread between the ADRs and the latter.

 

What I don't understand is what they plan to do from here. It also bothers me that insiders have kept selling all the way down.

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I've been watching HRT Oil & Gas (HRTPY, HRTP3) for some time. They are, at this point, a Graham style "cigar butt", trading way below cash on B/S. May take a position in the next few weeks.

 

Well below cash. If you notice the volatility in the US ADRs far outstrip that of the main listing, so often there's a significant spread between the ADRs and the latter.

 

What I don't understand is what they plan to do from here. It also bothers me that insiders have kept selling all the way down.

 

Agreed.

 

They can do a couple of things - Complete the Polvo acquisition and just run that asset, while not spending any more cash on Solimoes or Namibia. Alternately, they should (and are trying to) sell the company. One of their major assets is the roughly $300MM in NOLs accumulated over the last two years, which would have a real value for a local acquiror. So, you buy for less than cash, get Polvo and the NOLs for free, and retain the free option on Solimoes and Namibia in case someone else does find something.

 

...Sounds good... unfortunately corporate A&D departments don't think the way people on this board do.

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