Took a gamble yesterday and apparently we'll win out with this pricing. Some of the details of why we're very bullish on this stock.
- About 20 percent of the proceeds from Sao Paulo-based Gafisa’s sale will go to acquisitions and 35 percent will be used to buy land for construction projects, the company said on its Web site. Gafisa canceled a planned share sale last year.
- The projected sales value for new projects started in 2010 will climb to as much as 5 billion reais from 2.3 billion reais a year earlier, following a “strong improvement in market conditions,” Gafisa said Feb. 8.
- As much as 45 percent of the new work will focus on lower- priced housing as Gafisa takes advantage of a government plan to build 1 million homes for low-income families by 2011. Brazil’s economy is expected to grow 5.5 percent in 2010, according to the median forecast of about 100 economists in a central bank survey published March 22.