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For two years I've asserted, based on perceptions of worldwide demographics, that Brazil is the fastest growing consumer economy in the world and the only one investors should own. For almost as long I've been kicking myself for not owning shares of OTCPK:BOBS.

A year ago, company insiders owned about 30% of outstanding shares and were making large open market buys at escalating prices. Likely because BOBS.OB is an over-the-counter stock, meaning it is not listed on a major exchange, I ignored those signals of strength despite equally strong fundamentals.

Brazil Fast Food sells fast food franchises throughout Brazil for an up front fee plus 5% of total revenue, a stunningly low-risk, high-reward business model. They license several restaurant chains, including Pizza Hut and KFC. In 2010, BOBS.OB reported net income of $7M with revenues of $124M. Both show significant growth over 2009, and once again, insiders have been aggressively buying the stock.

Over approximately 25 open market transactions thus far in 2011, board members have bought almost 500,000 shares of company stock. It's not hard to see why as, despite an almost uninterrupted multi-year run from $3 to $9.40/share, Brazil Fast Food is worth just under $80M. With 20% revenue growth, margin expansion, a trailing earnings multiple of 11 and the Summer Olympics coming to town in 2016 shortly after the FIFA World Cup in 2014, the future for shareholders of BOBS.OB looks bright.

Anyone interested in the stock should consider acting quickly. Despite conflict, controversy and debate across the globe today, two things seem certain:

1. BOBS.OB will go up today because insiders want every share they can get their hands on at any price.
2. I'll be watching and kicking myself.

Source: Brazil Fast Food: So Tasty, Insiders Can't Get Enough