Brazil’s economic recovery to enrich small real estate developertinyurl.com
Brazil’s record low interest rates, low construction costs and higher real estate prices will likely boost residential demand in the future. CR2 Empreedimentos Imobiliarios SA (CR2), a real estate developer in the states of Rio de Janeiro and the Sao Paulo metropolitan area, is poised to benefit from higher residential and commercial prices.
The Monetary Policy Committee of the Brazilian central bank has left the country’s benchmark interest rate unchanged at a record low of 6.5 per cent as the economy emerges out of its worst recession ever recorded. The central bank’s latest statement in December pointed to a more dovish stance, meaning that interest rates could remain low before a likely hike next year. This could pressure mortgage rates lower, which has been on a downtrend which keeps the borrowing costs low for potential house owners.
According to the Fundacao Getulio Vargas think tank, the cost of many construction projects is decreasing as firms cope with labour surpluses and decreased costs for many of the materials they need for projects. The cost index for new building construction has dropped and many contractors were probably caught by unexpected cost decreases in late 2018. Lower construction prices will increase the margins of CR2 and could improve the company’s bottom line in new private-sector development projects.
On the demand side, real estate prices, albeit in negative territory has been falling at a slowing pace. The trajectory of national average housing prices trends upwards, and is likely to reach an annual gain by this year. The improvement in economic growth backed by higher credit lending will lift lending real estate demand and give CR2 in the real estate sector a much needed market cap increase.
CR2’s valuation is close to the sector’s median although it operates with a net cash position and lower financial leverage than its peers. Net income growth for the last quarter has also been impressive which outpaced competitors. Receivables from clients in Q3 however added to BRL 24mn, which is a drop of 35% from Q2 as the firm is still recovering from a receivable loss of BRL 7.5 in Q1. Overall, the firm’s main assets reside in Cidade Paradiso and Parque das Aguas which represent 89% of the company’s land bank.
Brazil
IBOVESPA - Cenário de eleição Faltando 1 semana para eleições de 2º turno dos presidenciáveis, entre Bolsonaro e Haddad, com vantagem considerável do Bolsonaro perante as pesquisas, tudo indica para uma alta do nosso Bovespa ultrapassando o topo histórico após a confirmação nas apurações dos votos, alvo de 100% do pivot de alta.
Are you ready for Round 2? Buy, buy, buyAmazingly bullish setup.
As soon as it tested the MA200 and the .618 of the previous uptrend, the buyers appeared.
This is an absolute clear buy.
BUY GBIO33 on possible long-term bottom formationBUY GBIO33 on possible long-term bottom formation. Added stop and goal target for swing trading, but could also be good buy opportunity for long term buy and hold position building. MACD and OBV not great, but good, indicating possible bottom. Fundamentals improving.
Buy opportunity GOAU4 for buy and hold position buildingGood buy opportunity point in GOAU4 for long-term buy and hold position building.
Buy MOVI3 on breakout from horizontal flagBuy MOVI3 on breakout from horizontal flag - apparently graph here is not yet adjusted to dividends, but you'll have to trust today's candlestick is about to close breaking out from the pattern. Strong fundamentals.
EWZ: Ready to move up from here after consolidating?$EWZ looks poised to rally above the 'Temer almost impeached' fundamental key levels.
These 3 price levels acted as key support and resistance zones since the market bottomed as per my previous publication, good time to rebuy Brazilian stocks. Bolsonaro being elected president might please investors in the long run, is what I think.
Cheers,
Ivan Labrie.
Late Buy LOGN3Even though best opportunity on double bottom with extreme OBV divergence already passed, the recent breach of the previous top may be a good buy opportunity with stop loss at 4.00.
BUY SNSL3 On double bottom and breakout from negative trend lineBUY SNSL3 On double bottom and breakout from negative trend line. MACD highly divergent.
$EWZ WeeklyIf the election goes the way 'they' want, and he seems to be poised to win; we we could see a $10-$15 upswing. Option call contracts are seeing high volume. #IMO
ENIA LONGENIA is a company that has gotten smashed with most EM's over the past few months, but has had no fundamental changes. Price recently bounced off support at $7.00, and is up over 10% since then on big green volume. This is an easy long to hold over the next few months. My price target is $11.
Sell HYPE3 on bearish breakoutHYPE3 is breaking out from a bearish rectangle and/or bearish pennant pattern it has been in for almost 100 trading days. On Balance Volume clearly shows bears are stronger. Short now, stop loss at around 30.
Short HYPE3 on trend line break and weak OBVAfter a 33% selloff from historic highs, HYPE3 is breaking out from a more than 100 days long complex congestion that may be a continuation bearish rectangle and/or bearish-pennant type of pattern. On balance volume indicator confirms bears are winning the battle. Short.
Brazil is at make or break levelsWill either rocket downward after breaking resistance or rebound here. Fundamentally, this looks to be more negative based on what is happening in the world of currency.
CUP & HANDLE FORMATION FOR USDBRLHi all, cup and handle formation for USDBRL, after breaking the trendline at 4.30 i guess price will rocket around 6.94
Buy GBIO33Buy GBIO33 on strong MACD divergence. For stronger buy indication, wait for price to surpass negative trend line.
Long Vale for Wave 5 AdvanceVale looks as though it's completing it's 4th Wave decline and should be heading upwards for the 5th Wave.
A Larger Correction Might Be Underway for VALEThe Cycle Wave 5 top (and Supercycle Wave 1 top) was most probably on the week of the 14th of May 2018 (please reffer to related idea).
NYSE:VALE now seems to be on an Intermediate Wave C which is part of the Cycle Wave A down.
If this count is correct we should still expect Intermediate waves B and C.
Only after Cycle Wave C, the last part of Supercycle Wave 2, should we see the hallowed Supercycle Wave 3. \o/
Best idea for now is to step aside from the stock and wait for signs Supercycle Wave 3 is around the corner...
