Investors throwing the baby out with the bathwater... GFA will move in a northeasterly direction as homeownership grows along with a growing middle class in Brazil.
GS wrote a note on Brazil's central bank rates dropping in 2009 making homeownership more favorable, and Brazil's growing economy allows for strength needed to drive up home sales. GS recently switched from sell to neutral, which means it's time to buy before everyone else does ( http://news.moneycentral.msn.com/category/topicarticle.aspx?f... ).
With Brazilians becoming more comfortable with credit and the status symbol of homeownership, Gafisa stands to enjoy a multi-year move in increased profits.
http://www.iht.com/articles/2008/05/25/business/24brazil.php?...
$31.11 (07/22/08)
