GGB (GERDAU SA ADS)
"So, let's start by pimpin' our way down to Brazil. The steel mill here is Gerdau SA (GGB); it trades right here in America. I could just tell you to buy the subsidiary that trades in the U.S. under 'GNA' but Cramer has learned, after many painful mistakes, that you never ever buy the subsidiary; always buy the parent company.
When you buy GGB, you're buying one of the largest steel co.s in BRIC (Brazil, Russia, India and China). With the Brazilian economy on fire, with Latin America finally coming into the capitalist fold - despite a couple of nare do wells in Bolivia and Venezuela, even though these govts still have a thing for trying to nationalize oil, I've got to tell you, the whole continent really is functionally capitalist.
A big steel producer is precisely what you need for that area - buy, buy, buy!
This fits into the materials and infrastructure part of my little 'MICA' acronym.
I don't want you to think there's no downside. The company's been struggling lately; Brazilian currency is strong. Holy cow! The strong currency puts them at a big disadvantage competing with steel imports - trying to export their stuff with higher prices, but you know what? The Brazilian economy is so strong right now that, even with an expensive currency, GGB should be able to grow.
"So, let's start by pimpin' our way down to Brazil. The steel mill here is Gerdau SA (GGB); it trades right here in America. I could just tell you to buy the subsidiary that trades in the U.S. under 'GNA' but Cramer has learned, after many painful mistakes, that you never ever buy the subsidiary; always buy the parent company.
When you buy GGB, you're buying one of the largest steel co.s in BRIC (Brazil, Russia, India and China). With the Brazilian economy on fire, with Latin America finally coming into the capitalist fold - despite a couple of nare do wells in Bolivia and Venezuela, even though these govts still have a thing for trying to nationalize oil, I've got to tell you, the whole continent really is functionally capitalist.
A big steel producer is precisely what you need for that area - buy, buy, buy!
This fits into the materials and infrastructure part of my little 'MICA' acronym.
I don't want you to think there's no downside. The company's been struggling lately; Brazilian currency is strong. Holy cow! The strong currency puts them at a big disadvantage competing with steel imports - trying to export their stuff with higher prices, but you know what? The Brazilian economy is so strong right now that, even with an expensive currency, GGB should be able to grow.
The bottom line!: Back when Brazil wasn't so developed, Bethlehem Steel and U.S. Steel were the largest and most important steel co.s. Now it's GGB. You want to try to make money in this market, you should buy, buy, buy GGB!"
