New dollar swap facility improves liquidity outlook

By Rudy Martin | Nov. 3, 2008

Market got you down? Wish you could take a vacation to somewhere exotic like Brazil ? Maybe you should send your money there and let your portfolio recover. The Feds' announcement that they were creating a dollar swap facility for Brazil, Mexico, South Korea and Singapore has helped the local stock markets too. Take a look at how well the Brazilian stocks from the Latin Stock Investing Newsletter have done.

The top performer in the defensive, higher-yielding model LSI Dividend portfolio was the position in TSP, the Brazilian operation of Telefonica. TSP actually gained 19.9% since we launched the portfolio. The company just released results for the quarter with a solid 9% cash flow gain in the quarter over the prior year. The earnings strength is being fueled by a 27% annual gain in total broadband clients which now total 2.5 million. The stock is basically a pure play on telecommunications in the booming Sao Paolo market. It trades at a conservative 8.9% dividend yield or 5 times cash flow.

Interested in this more like this one? Check out these headlines on stock's highlighted in the newsletter:

• Mexico's America Movil says 3Q profits up 32 pct

• Perdigao's sales grow 80.4% in 3Q

• Embraer order book up 34 percent

It's clear from this these Latin Stocks are set for better economic times. This contrast will get even greater as US companies continue to disappoint and warn about slower results for this year.