Cosan Ltd.  (CZZ) Trade Now »     Rate CZZ  -  Discuss CZZ  -  Add to Watch List        

I just wanted to reiterate my BUY on Cosan Ltd. Unlike the action we saw this past week from the steel's and coal companies selling off while the underlying continued to to march on like Macy's was going out of business and this was the last day to get that fancy L.V. bag for the coast of taking the family to Chuckey Cheese for dinner.

The story is simple... for evey liter of corn based ethanol you get better than 2 liters of cane based ethanol. Thats right folks why would you pay 1.70 per liter for fake and sugary when for .70cents you cann have pure cane.

Filed under: Options

Cosan (NYSE: CZZ), an ethanol and sugar company, closed at $7.99. Sugar prices are near a 28-year high. CZZ call option volume of 2,974 contracts compares to put volume of 274 contracts. CZZ September option implied volatility is at 82, December is at 77; below its 26-week average of 98, according to Track Data, suggesting decreasing price movement.

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.

Yesterday, Cosan S.A. (CZZ) (Analyst Report), the Brazilian sugar and ethanol producer, signed a three year contract with Mitsubishi of Japan for exporting ethanol fuel to Japan. According to the contract, the price will be based on the ethanol rates in Brazil.

Approximately 80 million liters of ethanol are likely to be exported every year, which will be transformed into ETBE, a combination of ethanol and isobutylene, in Japan. ETBE directly mixed with gasoline helps in eliminating distribution network modifications than ethanol mixed with gasoline.

Congratulations to Rudy Martin, who has launched a fascinating new advisory service focused on Latin American stocks.

 In his Latin Stock Investing, he explains, "The region's financial resilience is supported by three mega-trends: a population explosion, energy self-sufficiency and materials wealth." As an overview, we feature a glimpse at 4 of the 14 stocks chosen for his just-begun model portfolio.

Filed under: International markets, Brazil, Newsletters, Presidential elections, Commodities, Oil, Agriculture, Stocks to Buy, Green Stocks

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"My pick for an Obama victory would be Cosan (NYSE: CZZ), a major Brazilian maker of ethylene from sugar; the company should benefit as the U.S. expands its use of alternative fuels," says Vivian Lewis, editor of Global Investing.