If you're a believer in the un-stifled growth potential of the vastly underdeveloped South American Continent and it's dwellers. Then for sure you like BSBR here @ $7.60. The Olympics in 2016 is a bit away....but the lending starts years before.
This is where my generation has to invest for its future. However, we are on the verge of an impossible global crisis. BSBR is immune to this due to high capital ratios, conservative lending, Brazil low debt and low credit/banking penetration.
All of the incoming mess will temporarily hit BSBR, but share price could drop out of proportion with real issues. Unlike Europe, where banks share price are not yet pricing real and feared insolvency, South America depressed share price will represent an incredible opportunity to build a pension fund 2045 for a few grands in 2011-2012. Buying BSBR today is sound in a 30 years investment perspective and would advise to buy some, but to get 100% of your target exposure today might prove non-optimal. Buy some now and should BSBR dive to 2.50$ following Eurozone disintegration and USA debasing, you will be able to get more for a lower price.
I have many losses in my portfolio and at some stage losses are annoying and must be recovered by earning money back. However, should my loss increase on what I already own, it may also spell opportunity to acquire stuff sold by others at further losses in panic and just wait and ride it out for 20 years.
If this stock goes to $2.50....I would buy 400,000 shrs...that day...lol That is no lie or embellishment. Just the divy on it alone at that point would be upwards of 12%....sign me up! You also have to consider the currency benefit of owning BSBR if the USD deteriorates further in future and the countries with visible growth and resources go strong. This is a great play on that as well.