Gerdau S.A. (ADR) (NYSE:GGB)

Stock is undervalued. Jubak sets $16 price target by Q4 2012.

Market has over discounted GGB. Recent profits show adaptability to market conditions. Eventual economic growth will bring break out from depressed price.

Gerdau is a good Brazilian company.

Price is overly punished, slowing china growth should bring down price of iron ore, DCF analysis values company much, much higher

P/E=10.7, Sales are increasing, P/S=0.7 and P/CF=5.1. On top of that P/FCF<7, debt=14b with 19.2b equity. Cash=2.16b and LTdebt=13b which is going down year by year.

Once brazil's economy settles stock will soar

Won't beat the S&P.

chart 2 + fundamentals

$0.02 below it's trailing P/E ratio! The new Brasil President will raise foreign import tariffs if they try dumping iron and steel here! Internal growth is good here even without export demand.

Solid company in a growing market with experienced management. Currently oversold.

Outoffavor

Brazil is gearing up to host both the World Cup and the Olympics, that means massive investments in new facilities as well as general infrastructure. I expect steady increasing rev's for the next 4 years.

I love Brazil!

Upcoming World Cup and Olympic infrastructure building boom, and expanding Brasil economy, all working in this stock's favor. Should be a rewarding long term holding.

Gerdau SA is a Brazil-based producer of long rolled steel. Gerdau operates steel mills that produce steel by direct iron-ore reduction in blast furnaces and in electric arc furnaces. In Brazil, it operates blast furnace steel mills, including its mill, Gerdau Acominas, an integrated steel mill located in Ouro Branco in the state of Minas Gerais. Its main customers are the industries and companies connected to the civil construction and the farming and livestock sectors. As of December 31, 2009, the Company had a total of 137 steel units globally, including distribution units, joint ventures and associated companies. The Company operates in Brazil, Argentina, Chile, Colombia, Guatemala, Mexico, Peru, Dominican Republic, Uruguay, Venezuela, the United States, Canada, Spain and India. Its subsidiaries include Gerdau GTL Spain SL, Gerdau Steel North America Inc, Gerdau Steel Inc and Axol SA, among others.

One of the more profitable companies in the Iron and Steel industry with a net margin of 3.78%. Revenue is increasing. 46.66% increase in earnings. Company has improved earnings per share by 46.7% in the most recent quarter compared to the same quarter a year ago. Stock price has surged by 177% and I see no reason why this should not continue.

World economy is bleak!

Drastic drop, drastic rise.

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Major growth in Brazil...