To make money in investing in any emerging market you want to find a small company that is growing
exponentially, trading well below its value while its sales are going through the roof. Well that’s true for
any market but the trick for the individual investor is to track down such a company in the early stages to
Let’s take a look at Brazil, The Brazilian economy is the 7th largest economy in the world with a growth
rate of 4-5% . This type of steady growth makes Brazil appealing. Brazil is not dependent on any
foreign oil, is a leader in alternative energy and produces more ethanol than Europe and Asia not to
mention that Brazil is the second largest producer of iron ore in the world.
With a steady work force and abundance of natural resources Brazil has become very active in
manufacturing everything from the jet aircraft to washing machines along with phenomenal IT and
We no longer look at Brazil as a country with an unstable currency or super inflation rather a mega
opportunity for investment.
For one thing Brazil is hosting World Cup 2014 and on Sep. 30th the Brazilian government just announced
$ 3.25 Billion in tax cuts to telecommunications companies who will improve their networks over the next
That means about $ 11 Billion in additional investment in the IT and Telecom sectors. This is in addition
to the already committed $ 80 Billion plus Brazil is spending on preparations for The World Cup which is
less than 1000 days away!
Now rather than buying into Brazilian mutual funds ETF’s, GTF’s or ADR’s we want to buy a Brazilian
small cap stock that trades on the US stock market that we can buy through our regular U.S. brokerage
account through a broker or on-line.
One Brazilian Small Cap company who just recently became public in the United States is Midas Medici
Group Holdings, Inc. The stock trades here and the symbol is (MMED:US) or (OTCBB:MMED).
MMED is one of those companies who will benefit from the slough of investment money to the IT and
Telecom industries. For example they just announced a new $ 2,000,000 contract for IT upgrades for
public offices in Santa Catarina, Brazil and another $ 3 million contract from CEMIG (NYSE: CIG) to
improve its data centers in Brazil.
According to Larry Isen, editor of “The OTC Journal”, the company is expected to have revenues
exceeding $ 130,000,000 in 2011 with its acquisition of Brazilian IT firm Cimcorp who had over
$ 80,000,000 in revenues in 2010.
After a little research I found out that the company only has 10 million shares issued and outstanding
and is trading at around $ 3.50 per share. MMED should be trading at around $ 10 or more based on its
current status and expected growth according to industry experts.
The company has also just announced that it will be applying to trade on a major exchange and it already
seems to qualify for either the NASDAQ or AMEX.
It’s a newly traded company here and no one seems to know about it but the stock play is compelling.
The company website is midasmedici.com
There is also a YouTube video available, just search Midas Medici on YouTube.
By nivelsur from Pixabay