John Gilluly
Special situations, long/short equity, ETF investing

Gafisa Revisited And Restructured

One of the biggest conundrums investors can face is when a market abandons the fundamentals for a broad-based sell-off in its names. Not so very long ago, I can remember Ford (NYSE:F) at a buck, Bank of America (NYSE:BAC) at $2, and Pulte Homes (NYSE:PHM) at $3. The desire to flee during the financial crisis had created once-in-a-lifetime fire sale prices in those blue chip names.

Thus when questioning the recent fall of Gafisa (NYSE:GFA), an investor might ask himself, "What does political upheaval, a rise in inflation, street-riots involving millions, and a sudden crash in emerging markets (to the tune of 20%), do to the price of assets in those markets?"...

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