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Szew's avatar

Thanks for the analysis!

A note, as I have done an analysis of Grupo Mexico myself: Grupo Mexico is not a good peer, but its transportation business is listed independently on the stock exchange under "GMéxico Transportes", which would probably be the best peer overall for Rumo

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Modern Investing's avatar

Thank you. Havent seen this until now.

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Antonius van Opstal's avatar

I would consider buying cosan at current prices a good alternative for those who have no access to brazilian stock market

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Modern Investing's avatar

Yeah, this is an option. The thing with Cosan is that it is a very complex business with many moving parts. But its extremly cheap.

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Emerging Value's avatar

Nice analysis. How do you feel about cosan leverage and interest costs? I'm not too convinced on it

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Modern Investing's avatar

Thx! Well I don’t own Cosan. I would like to, considering some of their assets are real crown jewels, but I can’t fully grasp the ethanol business and probably never will be. It’s good they have left Vale and started repaying some of their debt. But I am not the best person to ask for Cosan.

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Inflecting_Bottoms's avatar

Is there a liquid listing to buy this? The US otc seems illiquid and IBKR doesn’t allow Brazilian listed.

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Modern Investing's avatar

Either you have direct acess to the Brazilian market or you go with the OTC listing. You could also buy Cosan, which owns 30% if Rumo. Cosan is listed in New York.

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