You hear a lot about Brazil's
strong economy
and bountiful natural resources. You don't however, hear much about
Brazilian technology stocks.
That's understandable. Brazil does lots of
manufacturing for multinationals, including
FoxConn
(
HNHPF
,
quote
) and Apple (
AAPL
,
quote
). But home-grown technology is hard to find.
If you look carefully, though, it can be found. Here are three
technology stocks you should keep an eye on.
[caption id="attachment_59545" align="alignright" width="300"
caption="Embraer is one of Brazil's most competitive technology
stocks."]
[/caption]
EMBRAER
(
ERJ
,
quote
): Jets are complex machines. The companies that make them are
technology experts.
Aviation companies in developed nations have experts to
draw on. This gives them an advantage. Embraer is a rare emerging
market company which can
compete with General Dynamics
(
GD
,
quote
) and Lockheed Martin (
LMT
,
quote
).
ERJ had a
difficult spring
. The stock gained early in the year, but has fallen back. It seems
to be stabilizing near $28 per share.
MERCADOLIBRE
(
MELI
,
quote
): This popular shopping site may be from Argentina, but the "eBay
of Latin America" is the 13th most popular website in Brazil. It is
also the most popular site you can buy shares in. (The companies
higher on the list are private, or are technology stocks from
developed nations.)
MercadoLibre recently
missed its quarterly estimates
which triggered a sell-off of its stock. However,
the company's numbers are sound.
In Latin America, MercadoLibre is the
dominant player in online commerce
. Look for it to benefit from Brazil's strong consumer base.
TELEFONICA BRASIL
(
VIV
,
quote
): Brazilians love their mobile phones, and the
telecom market is thriving
. Telefônica Brasil is the leading mobile phone company in
Brazil, and is likely to
stay that way
.
What's the best thing about Telefônica Brasil? There's no
drama. The stock is steady. The beta is low at 0.66. The dividend
yield is high at 4.39%. Those numbers are rare among technology
stocks, and worth your consideration.
