Time For Brazil: Two Takes, Two Solid Bets & Alternatives (PBR, EWZ, BZF, BRF)

Investing

Published: September 25, 2010 8:01 am

Last Updated: April 28, 2020 7:42 am

Looks like it is time for Brazil to shine again. Petroleo Brasileiro S.A. (NYSE: PBR), or Petrobras, managed to get off the world’s largest stock sale. This appears to be a good event for iShares MSCI Brazil Index (NYSE: EWZ) as the country’s key ETF product, and there may be an alignment of the stars with the broad-based stock market.

Petrobras (NYSE: PBR) priced the largest equity offering ever, right at $67 billion for a whopping 2.3 billion shares at $34.49 per American Depository Share. ADRs closed down 1.8% Friday at $34.92 and the 52-week range is $31.21 to $53.46. Thomson Reuters just issued some proprietary analysis showing that Petrbras only needs to be a mediocre offering for Brazil’s BOVESPA to take off.

Our technical analysis affiliate is Adam Hewison of INO. He has a big chart call read on iShares MSCI Brazil Index (NYSE: EWZ) that is very bullish here on the ETF. Hewison’s call: new highs above $100 in the Brazilian ETF, and the audio-video gives many anecdotal data points on this matter. The current $73.90 price compares to a 52-week trading range of $57.18 to $80.93. The ETF is down by about 1% year to date and net assets are over $9.5 billion.

As far as some alternatives, there is always the currency ETF via the WisdomTree Dreyfus Brazilian Real (NYSE: BZF). At $28.52, its 52-week range is $24.46 to $28.62.

A second ‘back-up alternative’ play for Brazil could be the Market Vectors Brazil Small-Cap ETF (NYSE: BRF), although at $55.25 its 52-week trading range is $36.86 to $55.78. This is not exactly tied to Petrobras and is far smaller and less liquid, which you probably gathered by the small-cap aspect of the name.

Sometimes you have the charts…Sometimes you have the fundamentals… Sometimes you get both the charts and the fundamentals on your side.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

The #1 Thing to Do Before You Claim Social Security ^(Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.