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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (46963)	3/9/2012 10:23:20 PM
From: Sergio H	Respond to of 78666

<Not sure i want to own anything in Brazil right now> One Co I would stick with in Brazil is SBS. With Brazil set to host Wold Cup soccer and Olympics, SBS which provides basic services is in the xhairs of a win win opp.

To: Spekulatius who wrote (46963)	3/10/2012 5:09:04 PM
From: E_K_S	Read Replies (1) \| Respond to of 78666

Brazil to extend IOF tax to longer maturities, paper says finance.yahoo.com March 10, 2012 * IOF to be extended to loans maturing in up to 5 years-Folha * Would be second IOF change in less than two weeks From the article:"...Brazil will extended a 6 percent tax known as the IOF on overseas loans with maturities of up to five years, local newspaper Folha De S.Paulo reported on Saturday. The tax had previously been charged when companies in Brazil took foreign loans maturing up to two years, but was extended to three years on March 1. The change will be enacted at the beginning of next week, the newspaper reported, without citing sources...". ------------------------------------------------ Also with all the QE from the U.S. and EU, worldwide currencies are getting whipsawed. The Brazilian Real is all over the board but many of the company loans must be paid back in $US. I am out of all Brazil stocks except VALE, ULTR and NPK. I will not be buying any other Brazil stocks and am hesitant to add any Foreign stocks because of all the ripple effects QE is having on country currencies. The exception might be Finland. The other key is to look at the type of debt from the Foreign company and see what the terms are for that being paid off (in $US , EURO's or in the local currency). So I will only be buying Foreign companies w/ little to no long term debt and that debt must be paid back in the local currency. Note: Several of these companies have used different types of currency hedges but from my experience these hedges do not really smooth out the impact of these huge currency effects. Some years large gains are reported and other huge losses due to currency exchange gains/losses. FWIW my most recent foreingn stock purchase,Stora Enso Oyj SEOAY did complete a EUR 500 Million Eurobond refinance. The company also carries a lot of LT debt. However, it replaced FBR which had much more LT debt that was to be paid back in $US. I would not be surprised that if the QE from Europe and U.S. continues, we see more international barriers to trade in the form of tariffs, foreign taxes and/or preferential deals to local companies over foreign for JV, partnerships and other trade agreements. EKS