Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

CBD - Pure Play On Brazil, But With Demanding Expectations

There's really nothing easy about Companhia Brasileira De Distribuicao (NYSE:CBD), including the explanation of why the company is called both CBD and Pao de Acucar. While this is the second-largest retailer in all of Latin America, and the largest in Brazil, the company has a convoluted and contentious ownership group at a time when the company really needs to be more focused on improving its asset turnover and returns.

The potential here is indeed very impressive, and CBD is one of the few Brazilian consumer stocks that American retail investors can invest in without going to considerable inconvenience (or accepting significant liquidity risk). That said, the stock already incorporates pretty heady expectations for growth and emerging markets are...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details