First and foremost.....I don't understand the connection between GFSA3 and GFA. I do believe they use the two to manipulate the stock price. First of all....Friday end of day showed GFSA3 at 3.79. GFA 3.77.....I notice the two kind of run in tandem. However, this morning GFSA3 showed Friday ended at 3.86 and down .06 to 3.80. IMO....when this day ends....One will be used to balance the price of the other and they will end up within .02 of each other. When we lost so much couple weeks ago....GFSA3 led the way in that demise. GFA, on its own did not drop like a lead balloon. The first day it dropped...it opened down .20 with only 1750 shares traded. Trades of 100 shares moved the stock down .02.....that in itself seems odd. Can anyone shed any light on this topic?
only as a consequence of the BR FX trading just above 2.01. GFSA3 is simply the local share and if the FX weakens, as it is doing right now, there will be more sellers in the ADR. There is a lot of pressure on the central bank to raise rates and my sense is until they do that, ADRs are going to be under pressure. What I don't get is why GFA doesn't issue global bonds and roll some of their higher cost debt? Part of the explanation may simply be they are trying to get the Alphaville piece to some conclusion. The company is very undervalued and the fact that it#$%$ this level several times over the last six months suggests the market is very comfortable buying here.