Brazilian Stocks in Focus: Gerdau SA (ADR) (GGB), TIM Participacoes SA (ADR) (TSU)


Gerdau SA (ADR) (NYSE:GGB):

The company’s RSI reading has hit 72.95. The stock edged higher by 4.49% to close previous trading session at USD 1.63.

The shares of the company fluctuated in the range of USD 0.79 and USD 3.70 in the course of 52 weeks. Over the three months, the company’s shares have surged by 33.61% and in the past one year, it has lost -51.75%. Additionally, the stock’s year to date performance has improved 35.83%. Over the last five days its shares have surged by 13.99% and in the past six months it has moved up 3.88%.

Further, the stock is at a price to book ratio of 0.28. The stock’s weekly volatility is calculated as 9.19% and monthly volatility as 7.92% with ATR of 0.11, beta of 1.66 and price to cash ratio of 1.41.

On March 15, 2016, Positive free cash flow generation of R$1.2 billion in 4Q15 and R$3.0 billion in 2015, supported by the optimization of working capital.

CAPEX disbursements in 2016 projected at R$1.5 billion, down 35% from the R$2.3 billion invested in 2015

On a merged basis, adjusted EBITDA reached R$ 4.5 billion in 2015 and adjusted net profit was R$ 684 million. Merged EBITDA margin of 10.3% in 2015, demonstrates the resilience of the company because of geographic diversification.

In 2015, Gerdau SA (ADR) (GGB) allocated R$253.0 million (R$0.15 per share) to the payment of dividends and interest on capital.

TIM Participacoes SA (ADR) (NYSE:TSU):

The stock increased by 3.91% to close last trading session at USD 11.17. The company’s shares oscillated in the range of USD 10.71 and USD 11.65 during intraday trade.

A total of 3.54 million shares exchanged hands, above its 3 month average volume of 1.43 million shares. Over the last five days its shares have surged by 6.58% and in the past six months it has moved up 5.58%.

Furthermore, the stock has weekly volatility of 6.51% and monthly volatility of 4.86% with ATR of 0.53. The stock’s RSI is 69.65 and distance from 50-day simple moving average is +32.48%, whereas its distance from 20-day simple moving average is +16.03% and distance from 200-day simple moving average is +0.99%.

TIM Participacoes SA (ADR) (TSU) through its auxiliaries, provides mobile telecommunication services for residential and business customers in Brazil. The company offers mobile, fixed, and long distance telephony; data transmission; and broadband services. It provides prepaid, post-paid, and control plan services; and value-added services, counting short message services or text messaging, multimedia messaging services, push-mail, video call, WAP downloads, Web browsing, business data solutions, mobile-learning services, wellness services, songs, ring-back tones, applications, voicemail, conference calling, chats, and other content. The company also sells various mobile handsets and accessories through its dealer network, which includes its own stores, exclusive franchises, authorized dealers, and department stores; and offers co-billing services to other telecommunication service providers. In addition, it provides products for mobile banking, insurance, mobile payment, and mobile money; and TIM Itaucard, a co-branded credit card.