NEWS/BLOG

Brazil Keeps Booming

While European economies continue to churn and China takes a timeout, Brazil is on fire, boasting the largest growth of any major economy for the first quarter of 2010, a whopping 9%. And while Brazil still has large numbers of its citizens living in poverty, the middle class is growing by leaps and bounds, now representing 49% of the population.

The Brazilian government is involved in the economy either as partial owner of some companies or as a strict regulator. This public/private mix seems to work well.

Brazil is currently undergoing a credit revolution, but since banks here have tight government controls, the boom in credit is unlikely to give way to a bubble/crisis. Brazil’s credit growth and the burgeoning of the middle class mean that certain types of stocks are likely to do well. Some worth watching are:

Ambev (ABV) Brazil’s only bottler of Pepsi (PEP) and of beer brands that combined have garnered 70% of the Brazilian market. This stock has Investor’s Business Daily’s highest rating in its category and is currently extended and has a 3.6% yield.

Banco Bradesco (BBD) This bank has underperformed recently but has investments in insurance and in IT.

CPL Energia (CPL) This utilities stock has just pulled back from a new high, is a “group leader” according to Investor’s Business Daily and has a 7% yield.

Gafisa (GFA) The homebuilding company is currently 30% below its 52-day high, but has begun picking up steam and is just above its 50-day moving average. With government support and the demand for more homes, it has potential.

Itau Unibanco Holding (ITUB): A premier Brazilian bank, it is currently 18% below its 52-week high.

Note: This is not a recommendation to buy any of the above investments. Do your own due diligence. 

Safari Promotes Girls’ Literacy

A 13-day fund-raising safari has been organized to benefit girls’ literacy in Africa. Called AfricAid’s Tanzania: In-Depth Cultural Experience & Wildlife Safari, it will include game viewing in Tarangire, Ngorongoro Crater and Serengeti parks, as well as village visits to AfricAid-supported schools. The program will begin May 20, 2011. Accommodations will be in luxury tented and mobile camps and lodges. Meals, land transfers and more will be provided.

The cost is $7,995 based on double occupancy with a single supplement of $750. The fee Includes a tax-deductible donation of $2,000 that provides a two-year scholarship for one girl as part of AfricAid’s Kisa Project (www.kisaproject.org). Kisa Project funds school scholarships and leadership training to some of Africa’s brightest young women.

Education for girls in developing countries has far-reaching benefits in building stable communities, establishing prosperity and promoting peace. Kent Redding, president of Africa Adventure Consultants and newly appointed Board member of AfricAid (http://africaid.com/?page_id=17), states: “It’s well known that girls who are educated can transform their own lives and positively impact the futures of their communities.”

For more information, see www.adventuresinafrica.com or call toll-free 866-778-1089.