It’s been some time since I’ve written about Cosan SA (CZZ) (“Cosan”) and this Brazilian conglomerate has certainly been busy in the meantime – executing a complex corporate restructuring and a large acquisition, as well as remaining on the hunt for refinery and pipeline opportunities and possibly contemplating future IPOs as well.
Right now Cosan SA ADSes trade on a when-issued basis (CSAN-WI), with the eventual symbol to be CSAN (the CZZ shares are gone). While many financial information sites haven’t updated that yet, they are still available for trade, and one CSAN ADS is equivalent to one Cosan SA (CSAN3.SA) share.
Cosan is a complicated, aggressive company, and one that is also exposed to multiple global commodity markets. This is not a widows-and-orphans stock, nor one suitable for investors daunted by complexity. That said, I believe the management team is quite good and I’m bullish on the underlying growth opportunities in Brazil’s sugar, ethanol, gas, and rail markets and Cosan is a good play on those. Current valuation is so-so – I see modest upside right now, but with Brazil’s economy likely to recover after the pandemic, the outlook for ethanol should improve.
Read the full article here:
Cosan Leveraged To Higher Sugar Prices, Recovering Fuel Demand In Brazil, And Aggressive 'Self-Help'
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