Best shares for 2008

Exame has combined suggestions by 21 market analysts with a statistic study conducted by consulting company Economática to choose the five most promising sectors and the 20 best shares for the year.

Alternatives against the American crisis. 

A way to protect your investments from the American crisis is to invest in shares of sectors that do not depend on the performance of international economies. An alternative are companies that sell to the domestic market, such as retailers and e-commerce portals. "These companies benefit from the Brazilian GDP growth, which is inserting a new range of consumers into the market", says Martha Dubugras, partner at Paraty Resources Management, in Rio de Janeiro. However, one must be selective to get a return from investing in such shares. Despite the positive projections, not all companies in this industry are good investment alternatives. Analysts recommend companies with material expansion plans and a consistent track record of results. "Some sectors, such as the clothing industry, have let investors down in the past, as they did not deliver the results they promised", says Alan Cardoso, analyst for Corretora Prosper, in Rio de Janeiro.

Today, the best options in the market are business in three segments: Technology, E-Commerce and Retail (see table). The most promising one in terms of appreciation is Ideiasnet, a holding company that invests in 18 technology companies - forecasted appreciation of 120%. The risk, however, is high. The company recorded losses of R$868 thousand in the third quarter of 2007, deriving from new acquisitions, and must increase profitability in order to deliver good results to shareholders. Another company that is seen positively by analysts is the e-commerce portal B2W that has been profiting from the continuous expansion in Internet sales.

How to profit from Brazil's brisker GDP growth

According to analysts, the companies listed below are the ones that will profit the most from Brazil's stronger economic growth, given their concrete expansion plans.

(1) Over the next 12 months in relation to the closing price as of January 23, 2008. See target prices listed on the EXAME Portal.

(2) Ratio showing the number of years investors would have to wait to get their money back receiving only dividends. The higher the ratio, the more expensive the stock.

(3) The ratio is negative because the company posted a loss in the third quarter.

Sources: analysts, CME and Economática.