My preferred pick is another Brazilian company traded on the NYSE- Votorantim Celulose e Papel (VCP).
VCP harvests wood pulp from forests, sells most of the material to other businesses and uses about 20% of the remaining pulp to manufacture its own specialty paper products for purchase. VCP produces carbon paper, art surfaces and high-end stationary with their pulp product, although it only makes up a small percentage of their revenue. Last year, VCP executed an asset exchange with global power International Paper (IP), acquiring land and mature forest in exchange for an established processing plant. VCP also has stakes in financial and other material ventures, but focuses primarily on pulp processing.
On paper, VCP is attractive. It is owned in established mutual funds like the Fidelity Latin America Fund and Wall Street heartthrob American Funds New World Fund. VCP is a division of The Votorantim Group, a large business cluster throughout Latin America.
I motion that we scoop up a dozen shares, much like the ELP acquisition. VCP is uneffected by domestic economic concerns the U.S. is facing and Theta Mutual has done well in Brazil. A small investment won't break our budget and it invests us in an industry we haven't touched.
I look forward to hearing details on each of your picks and growing our portfolio on Sunday.
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