Going Long with Brazil based Companies

We all know Brazil has been firing on all cylinders, so how about a few companies in Brazil that are less known but may benefit in the coming months, such as Braskem SA (ADR) (NYSE:BAK) 
Navios Maritime Partners L.P. (NYSE:NMM) and Brazil Fast Food Corp. (OTC:BOBS).

Danny Furman takes a look at three less popular investments that he believes are apart of the only real Bull economy.

Brazil Fast Food Corp. (Public, OTC:BOBS) sells for $5.06 a share, up 7.6% today.
1. Brazil Fast Food Corp (BOBS.OB): Q209 revenues were profitably up 62% YOY. The Company sells Pizza Hut and KFC franchise licenses for $60,000 and collects 5% of total sales from each restaurant. The model is extremely supportive of increased profitability as long as revenue continues to grow. Recent growth is seemingly due to a Brazilian love affair with subpar pizza, but the real story will be The World Cup, The Olympics and millions of tourists averse to trying new food. With volume starting to pick up, this thinly traded stock is as good a candidate as I know to return 100%+ the rest of this year.

Navios Maritime Partners L.P. (Public, NYSE:NMM) priced at $12.34 a share, trading even today.
2. Navios Maritime Partners (NMM): This high-yielding MLP has been buying ships at bargain prices all year and, unlike many bulk dry shippers, seems to be actually using them. With a yield near 10% and a busy decade of importing and exporting ahead for Brazil, NMM is likely one of a few stocks Peter Schiff wouldn't yell at you for buying. Parent company Navios Maritime (NM) trades at a cheaper P/E and P/B but only yields 4-5%.

Braskem SA (ADR) (Public, NYSE:BAK) goes for $14 a share and trading even today.
3. Braskem (BAK): This may be the stock that has performed the best since Rio de Janeiro was named host of the 2016 Olympics. I've been following BAK, a petrochemical company, for about 6 weeks and kicked myself for not buying at $9.50 when it first hit $11/share. Today it trades near $14/share and is up about 20% in the last week. Q2 was a record quarter with earnings over $2/share and, while Q3 forecasts are less rosy, refined oil consumption in Brazil has nowhere to go but up. I consider BAK a better investment than PBR because it is only dependent on domestic consumption, not international demand for oil. Any market pullbacks will hit BAK hard so this Brazil ADR is one I wouldn't rush into.

Disclaimer: No positions in any of the securities mentioned in this publication.