Zacks Analyst Interview Highlights: AmBev, Embotelladora
Andina, Net Servicos, Copel and Telemar
Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Claudio Freitas, who discusses AmBev (NYSE: ABV), Embotelladora Andina (NYSE: AKO.A), Net Servicos (Nasdaq: NETC), Copel (NYSE: ELP) and Telemar (NYSE: TNE).
¶ A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.
¶ For investors looking to increase their holdings in Latin America, where do you believe the least-volatile areas might be?
¶ I believe that companies focused in the local consumer market can outperform. In countries like Argentina and Chile, economic growth remains high and the outlook is still positive. In Brazil, I remain encouraged by the declining interest rates coupled with well-behaved inflation. I believe there is room for continued interest rate cuts in Brazil for the rest of 2006 and at least for the first half of 2007. In this sense, I guess that utilities and consumer products would make interesting investments, including electric utilities, the beverage industry and telecom companies.
¶ Would now be a good strategic time to buy into the Latin market, or would later be better?
¶ I guess that the right moment to buy might be closer to the end of the year, when there will be a more clear picture of the economic conditions in the U.S. and the effect on commodities prices. However, it is impossible not to note that there are some Latin stocks trading with very attractive valuations. Some investors with higher risk tolerance could consider this a good moment to start buying some undervalued stocks.
¶ Which stocks do you consider highly attractive at this time?
¶ I believe that the beverage sector remains interesting. I like AmBev (NYSE: ABV) in Brazil and Embotelladora Andina (NYSE: AKO.A) in Chile. Net Servicos (Nasdaq: NETC), the Brazilian cable television operator, is also an interesting growth case that deserves attention. Regarding utilities, I believe Copel (NYSE: ELP) and Telemar (NYSE: TNE) in Brazil are undervalued and should benefit from a combination of increasing demand and lower interest rates.
¶ Read the full interview at http://at.zacks.com/?id=2647.
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