Banco Bradesco: A Brazilian Play Unaffected by US Financial Crisis

When seeing Banco Bradesco (BBD) fall again after retreating for several days, I thought that it was time to add to an already smaller but profitable positionto that I first accumulated several weeks ago. Here is a graph of how the stock has traded the past year, as of Tuesday’s close, courtesy of Yahoo! Finance (YHOO):

 

 My purchase of BBD in the midst of the recent financial stock panic was timely as BBD lifted nearly 5% yesterday and is now nearly 6% from its all time high set earlier this month. This Brazilian bank which is growing annually in double digits is benefiting from strong domestic (Brazilian that is) economic growth and is not mired in the US financial crisis. 

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of BBD --- although positions can change at any time.

Comments

[Alex Filonov:]

I'm long BBD too. And I added to my position last week.

2008 May 29 10:44 AM

[David Hunkar:]

I agree.BBD is a buy at these levels. Their competitor ITU is splitting stock 5:4 on June 9th.

2008 May 30 04:47 AM

[SouthShore:]

How will Brazil's new financials tax policy affect their Banks? The tax has risen from 9% to 15%.

Since at least one US hedge funds took a large position in BBD (reported end March), it will be interesting to see if they begin to reduce their holdings in light of the increased tax.

I like Brazil's opportunities relative to India or China. Perhaps the best way to play any emerging market is via their banks. I also like their utility companies.

2008 Jun 03 08:46 PM