Anyone interested in another home-builder cliff-dweller?
GFA - down 40% in a month. Builds low-income high-rise housing in Rio De Janeiro and Sao Paulo, along with luxury towers in the same two cities. Just increased their cash position, sold off a profitable unit, recently received a $R7BL credit line; trading at 0.42 x book. Price is 2.53 with 2.42/share in cash. Added to my position at 2.43 and 2.53 yesterday and today. GS, Zell, Polo, have been buying large chunks of the stock during the South American chaos of the last three weeks.
This stock looks undervalued, however it is not performing well and the current economic situation in Brazil of high inflation and civil unrest does not encourage investing in this company at this time. But if you are investing for the long term (5+ years) it maybe OK to get in. Unfortunately, no one knows what will happen in the Brazilian market in 5 years.