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EM Trader Tim Seymour: Fantastic Brazil Play

If you’re looking to play Latin America, emerging markets trader Tim Seymour suggests getting exposure to the consumer through “the Wal-Mart of Brazil.”

His play is long Companhia Brasileira De Distribuicao a Sao Paolo-based company which is engaged in the sale of food, clothing, home appliances, fuel, drugs and other products.

Here’s why Seymour is bullish:

Trading at 16x forward PER, we like CBD as a secular story in the Brazilian food and electronics retailer industry.

We think the corporate governance noise that has been pressuring the stock price should quiet down now that Casino took formal control of the company last month.

We also expect them to take greater control over their electronics JV towards the end of the year by replacing the current CEO when his tenure expires.

CBD is also a way to play the next economic cycle in Brazil that should start later in the year into 2013 powered by the ongoing monetary easing as well as the preparations for the FIFA world cup in 2014.

Posted by CNBC's Lee Brodie




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Trader disclosure: On July 5, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long MNST; Joe Terranova is long NKE; Joe Terranova is long AAPL; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Steven Grasso is funds long ABX; Steven Grasso is funds long CUBA; Steven Grasso is funds long GERN; Steven Grasso is funds long J[Q; Steven Grasso is funds long HSPO; Steven Grasso is funds long MU; Steven Grasso is funds long NYX; Steven Grasso is funds long PRST; Steven Grasso is funds long VVUS; Steven Grasso is funds long XRX; Steven Grasso is funds long ZNGA; Steven Grasso is funds long CVH; Steven Grasso is funds long GM; Steven Grasso is funds long NYX; Steven Grasso is funds long TBT; Steven Grasso is funds long WLP; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long TJX CALLS; Pete Najarian is long NFLX CALLS; Pete Najarian is long MOS; Pete Najarian is long PCX CALLS

For Michelle Meyer
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Brad Lamensdorf is funds short JCOM
Brad Lamensdorf is funds short COL

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Jefferies Group, Inc. makes a market in the securities or ADRs of Whole Foods Market.
Jefferies Group, Inc. makes a market in the securities or ADRs of United Natural Foods.

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