Gafisa Shares Popped: What You Need to Know (GFA)

Gafisa Shares Popped: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of South American homebuilder Gafisa (NYSE: GFA ) climbed 11% today after economists cut their Brazilian 2012 inflation forecast for a fifth straight week.

So what: The forecast suggests that borrowing costs in the country will drop and, in turn, lure consumers into purchasing more new homes. Gafisa shares have been walloped over the past several months on a string of earnings misses, so it's no surprise that traders are rushing to get ahead of a possible 2012 turnaround.

Now what: Don't let today's rally keep you from looking into Gafisa. Even with the pop, Gafisa is still down an ugly 65% over the past year and continues to trade at a single-digit P/E. And with the Brazilian housing market expected to stay hot for at least another five years, the stock doesn't feel like a value trap, either.

Interested in more info on Gafisa? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.