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Monday, November 21, 2005

Stock Pick: Banco Bradesco (BBD)

I had some cash to use today and bought Brazilian bank Banco Bradesco (NYSE: BBD). I wanted to increase my international stock exposure. The only other ADR that I own is America Movil (AMX). Banco Bradesco is benefiting from a growing Latin American economy and increased foreign investment. With a growing economy there is great demand for cars in Brazil and they need loans. Banco Bradesco will continue to benefit from loan growth. I was considering buying Unibanco (UBB) but I feel (BBD) has better momentum. I still believe both are good investments.

With this purchase my portfolio is 10% ADR/International stocks.

3 Comments:

Blogger kev said...

I actually bought some bbd back at 50 dollars, I was thinkng its time to take some off the table. You still think it has a ways to go?

11/21/2005 4:37 PM  
Blogger Big Ben said...

Kev,
I think the Brazilian economy will continue to prosper with BBD and UBB providing more loans and growing earnings. I think ITU is a bit pricey and has less momentum than BBD & UBB. BBD should earn $5.30/share in 2006. I think it can trade at 15 times earnings the way they are growing their loans. 15 x 5.30 = $79.50 (price target) plus you get a nice monthly dividend from BBD.
If you want to take some shares off that is fine. Nothing wrong with taking a profit. I know I would add to my position under $54. Investors are craving for growth and Latin America has it.

11/21/2005 9:26 PM  
Blogger kev said...

yea, it's been a nice ride with bbd.

11/22/2005 8:54 AM  

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