Brazil Mining Tipped, PDVSA a Sell

Companies in the Brazilian mining sector are tipped, while PDVSA and Chilean ETFs are among top sells, according to an Institutional Investor panel in New York. Christopher Ecclestone, strategist for Hallgarten and Company sees the mining sector in general as a good investment opportunity. Privatization of mining facilities in Chile, Peru and other countries in LatAm are opening new investment opportunities and produce side projects in supporting infrastructure. Ecclestone names Brazilian mining company MMX as a top buy. PDVSA bonds are a top sell for Rob Rauch, director of research at Gramercy Advisors. He cites the loss of technical capabilities within the company and zero investment in infrastructure, which could undermine the ability of the company to stand on its feet. “Those bonds are cheap, they are going to get cheaper,” says Rauch. He also tips Argentine sovereign debt as a buy. Other investors in the forum tipped Petrobras and Brazil’s Lupatech as top buys. All of the panelists predicted decent gains overall for the year, in the range of 10%-30%, depending on asset class.