1. Trade idea: Brazilian commodity stocks

2. Why Brazil? Approach: Global marco view View: Long-term
China’s high demand for commodities
Traditional suppliers: Australia and Arabia
Rio Tinto, BHP Billiton, OPEC
New suppliers: Brazil and Africa
Vale, Petrobras, De Beers
China raised it’s import of materials last year by 42%.

3. Why Brazil? Brazil holds lots of natural resources
Oil, copper, nickel, iron ore and crops
A country in growth - high potential
Little political and economical risk
Strong bilateral trade between China and Brazil
Second biggest export of Iron Ore after Australia

4. Vale S/A Large mining company
Producing iron ore, nickel, copper and coal
Good fundamentals and solid balance sheet
60 billion in investments in the past 5 yr.
Selected fundamentals:
EPS(5 yr. avg): Industry: 18.85
P/E: Industry: 9.61
ROI (5 yr. avg): Industry: 15.78
ROE (5 yr avg): Industry: 19.01
Div. yield (5 yr. avg): - Industry: -
*Reuters
Listed on: Bovespa and NYSE

5. Petroleo Brasileiro S/A (Petrobras)
7th biggest oil company in the world
Daily production of 1,978,000 barrels
Partly state-owned
Discoveries of several major oil fields lately
Good fundamentals - incl. solid growth in EPS and low P/E and high ROI and ROE
Selected fundamentals:
EPS(5 yr. avg): Industry: 17.33
P/E: Industry: 19.58
ROI (5 yr. avg): Industry: 17.83
ROE (5 yr avg): Industry: 29.22
Div. yield (5 yr. avg): 2.74 Industry: 1,77
*Reuters
Listed on: Bovespa and NYSE

6. Noble Group Ltd.
Market leader in the global supply chain of agricultural, industrial and energy products
Very strong growth in 5 yr. sales and EPS
CIC acquired a 15 percent stake in Noble
Selected fundamentals:
Sales (5 yr. avg): Industry; 18.49
EPS (5 yr. avg): Industry: 18.85
P/E: Industry: 9.61
ROI (5 yr. avg): Industry: 15.78
ROE (5 yr avg): Industry: 19.01
Div. yield (5 yr. avg): 3.11 Industry: 2,62
*Reuters
China Investment Corp has had early talks for direct investments in Brazil and Mexico.
Listed on: Singapore Exchange