Monday, December 22, 2014

$PBR $RIO $ITUB Stocks Undervalued

Today I wanted to focus on three stocks that I see as being completely undervalued.

Petrobras, PBR, Rio Tinto, RIO, and Itau, ITUB are all between at least 30% to 50% off of their 52 week highs.  Additionally, as it is, the 52 week highs are even further below their all time highs.  In essence, these stocks have years of upside to go before they will approach all time highs.  This can happen fast though, as stock markets have a tendency to correct very quickly in one direction or another.

That being said, I view these as long term picks and that it will take a long-term view to make money in these.

For investors new to these stocks, now is a great time to buy.  For those that already own shares, I would take a wait and see approach.

I am long all of these shares in full disclosure.

The added bonus here is that as of this year, they are all paying generous dividends.  For next year, I expect Itau and Rio Tinto to raise dividends because of growing earnings.  Petrobras is the unknown here but I still expect a great dividend.

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