Thursday, March 11, 2010

Bookkeeping: Restarting Braskem (BAK)

We had a short 3 week estrangement with Brazilian chemical maker Braskem (BAK), leaving her Feb 24th, (she only wanted me for my attention, I only wanted her for her industrial exposure) but the stock looks ready to rumble again after doing nothing for a few weeks.   In fact BAK is pulling off an identical move as Greenhill & Co (GHL) did this morning.  We're back together again and making music. 

Restarting the position with a 2.5% stake, just under $15.30; will reconsider this relationship if the stock breaks back down below the 50 day moving average.  Otherwise a move to January highs would be a nice intermediate target.  Where I'll probably dump her again.

The whole idea here was to get some of the "industrial" exposure that HAL9000 loves right now ("the playbook"), and then turbocharge it with emerging market flair, but that thesis did not work out as HAL seems to love domestic industrial exposure over Brazilian, right now.  Maybe it will work better the 2nd time around; obviously HAL9000 has never had his microchips warmed by a Brazilian touch.  [Dec 9, 2009: Braskem - Brazilian Chemical Maker]

[egregious use of eye candy]

Our old friend Brazilian homebuilder Gafisa (GFA) is also looking much better lately.... as if you are looking at the charts in this entry.  Ahem.

Long Braskem in fund; no personal position

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