GFA: 0.80 x Book Value
TOL: 2.06 x Book Value
DHI: 1.94 X Book Value
I know these are two different markets, but it's still interesting. GFA trades at a 20% discount to Book Value, while US Home Builders are trading at double their book value. Suggests to me this stock could become a takeover target. Especially with the their financial troubles vanishing quickly.... and the housing market in Brazil turning the corner, much the same as the US market in 2011.
If Sam Zell was interesting in buying last year when they were "on the ropes"..... I wonder how much he is going to offer this time around, with the business environment much improved, and financial troubles in the rear view mirror? You would this stock would be trading at 1.5X book right now.... $9.00. With a move to 2.0X book within a year..... $12.00.
If a Buyout is going to happen, its probably going to happen sooner than later.... before the stock breaks back into double digits
I don't know where you pulled the P/B number, but I would assume its dated. It should probably be lower.
Here are a few things to think about.
1. Float is 432mi * R$4.50/sh = R$1.944bi market cap.
2. Assuming Alphaville is sold for R$1.9bi, Gafisa's Net Cash position will be $500mi
3. 432mi float / R$500mi = 0.86
If you add in Tenda and Gafisa's asset value, which includes $746 million in inventory for Tenda alone, the number gets pushed lower. I would guess tangible P/B is closer to 0.5 - 0.6 with those assets factored in.