Cosan Limited: Profiting from Sugar's High

To say that I am bullish on Brazil, sugar and sugar-based ethanol would be an understatement. No company has better leverage to the sugar industry than Cosan Limited (CZZ). Cosan Limited is the largest ethanol and sugar producer in Brazil and the largest grower and processor of sugarcane in the world.

Unlike the white elephant that is corn-based ethanol, which has driven up the price of food in general, sugar-based ethanol has not had the same impact on sugar prices. While many in the investment community have soured on biofuels investments due to the failure of many US-based ethanol producers such as VeraSun (VSUNQ.PK), the combination of investor apathy, leverage to the price of sugar, improving fundamentals and industry leadership makes Cosan worth considering.