I agree. Spin off Alphaville later on. The stock price should rebound on its own. I think the longer this stock remains below the $6+ Book Value, the more likely the whole company gets taken out. If I were Sam Zell, looking to get back into Brazil, it's a No Brainer what I'd do right now.
Yes, that's what I heard. I didn't think it was likely at first. But the more I analyze all the moving parts and the recent news, the more sense it makes for a run on the whole company. Then you can worry about splitting it up later on, after some of the "known" unknowns play out. At the current price, it's already discounted all the "known" unknowns. And then some. It would take "unknown" unknown events to justify such a steep discount to book. I bought some more today. I have a hunch we are going to wake up one morning and see this stock called UP 5 bucks! I'm not going crazy with it, but I can tell you I certainly wouldn't short the stock at current levels. JMHO
heard the whole company may be in play, not just Alphaville. The litigation over the remaining portion of Alpaville is holding up an offer. One would have to think it goes for at least 1.5x Book. Around $9/share. I've always thought this would happen, instead of just a spinoff or sale of one division. The CALL options were Insane a few days ago! I'm LOCKED & LOADED. Maybe this weekend is the Grand Finale
This is some of the verbage from the upgrade. The translation wasn't very good, but here is what I got
According to the broker, Gafisa had an improvement in their operational indicators such as sales velocity and significant recovery of cash generation, presented in prior operating. Moreover, the company has a valuation that reflects a weak result expected for the 4th quarter of 2012, but does not reflect an improvement for 2013.
Were also cited as strengths of the potential IPO Alphaville division of the company and an increase in its mortgage.
GFA was added to the recommended list from a "A Investments" ... a Brokerage Firm. They cited valuation, calling the company priced for poor fundamentals that existed in 2012. However, the stock should be priced higher based on 2013 improving fundamentals. BUY