Brazil Stocks Crushing S&P Over Last Month; Soros’ Stake An Exception (BSBR, BBD, CZZ, BAK, ELP, GOL, TAM, PBR, VALE)

Tickerspy’s Brazil ADRs Index

BRAZIL ADRS INVESTING IDEAS

• Popular long ideas: PBR, VALE, SID
• Popular short ideas: PBR, VALE, BBD
• Top dividend plays: OIBR, SID, CIG
• Pro favorites: ITUB, VALE, PBR

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BRAZIL ADRS COVERAGE

Stocks and ADRs based in Brazil

• Petrobras Helps Lift Brazil Stocks (PBR, BP, GOL, TAM, GGB, SID, VALE, CPL, TNE, CIG)
• China Lagging BRIC Peers (TNE, BRFS, MTL, LUKOY, INFY, TTM)
• Emerging Market Sectors Mixed After Tuesday's Pullback (GOL, TAM, PNCL, DAL, UAUA, PTI, TTM, ROSYY, HIHO, CCM, PWRD)

BRAZIL ADRS CHART

BRAZIL ADRS METRICS

Avg. Market Cap:	$26.5B
Avg. P/E Ratio:	20.3
Avg. Div Yield:	2.0%

Earlier this week, General Motors South American head Jamie Ardila told Bloomberg, “Brazilians are getting richer and the currency is stronger,” and as U.S.-listed equities have proved, one doesn’t need to live there to capitalize on the emerging market’s growth. As a whole, the Brazil Stocks and ADRs Index has outperformed the S&P 500 by 9% over the last month, and GM’s forecast bodes well for the largely commodity-driven economy.

According to the report, GM expects Brazilian sales to spike by 68% by 2014. Meanwhile, ships are backed up to export the country’s sugar crop, and coffee growers may boost aggregate 2010 output by 19% year-over-year in an effort to gain from surging futures prices. The Wall Street Journal cites a recent decline in Brazilian inflation for an uptick in stocks, and top individual performers are now ahead by more than 10% over the past five sessions.

Financials Banco Santander (BSBR) and Banco Bradesco SA (BBD) have led the recent rally, gaining more than 12% over the last week. On a one-month basis, sugar and ethanol giant Cosan (CZZ), chemical firm Braskem SA (BAK), and electric company Companhia Paranaense (ELP) have all surged by 16% or more.

Brazilian airline shares rode a wave of positive sentiment when Soleil initiated the U.S. airline sector at Outperform at the end of June. Gol Intelligent Airlines (GOL) and Tam SA (TAM) both spiked on the news, and have continued higher by more than 5% over the last five trading days.

Oil giant Petroleo Brasileiro (PBR), which was among Soros Fund Management’s top-U.S.-listed equity bets from the end of Q1, is currently the worst performing component in the Brazil Stocks and ADRs Index over the last month, slipping by -3.5%. Meanwhile, mining giant Vale S.A. (VALE) is also a laggard for the period.

Investors can track the Brazil Stocks and ADRs Index for performance trends, Pro holdings data, and a suite of other metrics at tickerspy.com.

Tags: BAK, BBD, BSBR, CZZ, ELP, GOL, PBR, TAM, VALE