Given the strong economic growth in Brazil and the overall strength of the worldwide mobile phone market, I think VIV is a great way for us to get in on a well priced company that recently received rumors of a 50% buyout that sent shares up over 10%. Given that the buyout has since been put to rest, my vote is to set a buy price on VIV of $25.50 representing its price before the rumors set in.
Friday, May 14, 2010
Vivo Participacoes SA
Hey guys - I wanted to take a moment to introduce a mid quarter pick for a place to put our money market funds. The pick is Vivo Participacoes SA (VIV) - it is the largest mobile phone operator in Brazil. An obvious play on the strength of the Brazilian economy, VIV is a company that controls the majority of the 180 million strong cell phone subscriber base in Brazil (accounting for nearly 90% of the population). That number will continue to grow to larger numbers as shown by this article that touches on population growth and retail sales growth in brazil reaching as high as 25% year over year.
Given the strong economic growth in Brazil and the overall strength of the worldwide mobile phone market, I think VIV is a great way for us to get in on a well priced company that recently received rumors of a 50% buyout that sent shares up over 10%. Given that the buyout has since been put to rest, my vote is to set a buy price on VIV of $25.50 representing its price before the rumors set in.
Given the strong economic growth in Brazil and the overall strength of the worldwide mobile phone market, I think VIV is a great way for us to get in on a well priced company that recently received rumors of a 50% buyout that sent shares up over 10%. Given that the buyout has since been put to rest, my vote is to set a buy price on VIV of $25.50 representing its price before the rumors set in.
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Just FYI (VIV) is dropping down to the buy target price I mentioned on 5/14. Let me know if there is any feedback.
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