Cesp, Vale, Copec, Bancolombia, Bimbo: Latin Equity Preview

The following stocks may make significant gains or losses in Latin American markets today. Symbols are in parentheses after company names, and stock prices are from the last session.

The Morgan Stanley Capital International index of Latin American shares fell 0.4 percent to 4,497.50 on Nov. 2 when markets in Brazil and Mexico were closed for holidays.

In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

Cia. Energetica de Sao Paulo (CESP6 BS): Sao Paulo state hired Citigroup Inc. to start planning the sale of its 33 percent stake in Cesp, Brazil's third-largest power generator, the company said in a late Nov. 1 statement. The hiring is ``a very important milestone towards a potential privatization,'' UBS Pactual analysts including Pedro Batista wrote in a Nov. 2 research note. They reiterated a ``buy'' rating. Uniao de Bancos Brasileiros analyst Fernando Abdalla raised his rating to ``buy'' from ``hold.'' Cesp fell 1.9 percent to 32.17 reais.

Votorantim Celulose e Papel SA (VCPA4 BS): Deutsche Bank analyst Marcelo Luna raised his rating on American depositary receipts (VCP US) of the pulp producer to ``buy'' from ``hold''. VCP's stock fell 1.44 reais to 53.51 reais on Nov. 1.

Cia. Vale do Rio Doce (VALE5 BZ): The world's second- largest nickel producer is reviewing plans by its Indonesian unit to build smelters at two projects pending an assessment of the amount of mineral reserves, Roberto Castello Branco, director of investor relations, told reporters in Jakarta late Nov. 1. Vale fell 99 centavos, or 1.8 percent, to 53.67 reais.

Renar Macas SA (RNAR3 BS): The Fraiburgo, Brazil-based apple producer fully insured its orchards for damage from hail to protect against loss of its 2007-2008 crop. The company paid 12 million reais ($6.9 million) for the policy, Renar said in a Nov. 1 filing to Brazil's securities regulator. The shares fell 15 centavos, or 6 percent, to 2.35 reais.
pennystock-profits.com