Girls in thongs are not the only hot thing in Brazil....

even though some of you would care to disagree! Im serious! Brazil has one other exciting feature! Growth in its Economy of course!
So, how can we bank on this economic growth? Through Banco Itau S.A (ITU) of course! From the company name, you can probably figure out that ITU is a bank. So what makes ITU so special? You mean besides being one of the largest banks in Brazil, offering both retail and commercial banking services? It also offers financial managment, consumer credit lines, services, leasing as well as foreign exchange trading! It also offers the people of Brazil other services like investment banking, securities brokerage, AND insurance to its consumers and business customers! Now thats complete banking! ITU has over 3,000 branches throughout Brazil (rainforest locations not included)! Currently the stock is at $24.23 and the stock is fresh off a stock split!

Banco Itau S.A. (ITU) 3 month chart


ITU's chart is one of beauty. I have to note, everytime the stock had a dip to its 50day MA, you can see how the insitutions began gobbling up shares immediatly. This helped bring back the momentum and keep it going. Even more noteworthy is how volume is starting to pick up even more briskly above the 2o dollar level! This one is a clear winner!


Approach: I would buy between 200-500 shares. This is a stable investment, so I wouldn't be that worried investing that much into it. The stock has shot up over 7% during Friday's (10/7) trading. I would wait until either Tuesday or Monday to buy. Make sure you buy the stock on dips!

Time Frame: I like this stock as short to long term trade. I am regarding it as a trade because I know that sometimes Latin American markets can sometimes be fickle and have a strong sell out. Thats why if you have a situation where the stock dips down below the 50 day MA and it can't pull itself up, don't hesitate to sell it.

Target: I believe this stock can easily double. Of course this isn't going to happen over night, so some patience is required on your behalf. The 1st target is $30. My 2nd target would be $37. Once it reaches that target we will see what you can do from there.