"For my favorite stocks for 2008, I'm looking to South America," says Larry Edelson, editor of Real Wealth. Here, he looks at Sadia (NYSE: SDA) and Cresud (NASDAQ: CRESY).
"Sadia S.A., a more conservative idea, is a Brazilian food producer with operations in Brazil, Argentina, Chile, Uruguay, Paraguay, and Bolivia. It is one of the largest food companies in the region. Half of its sales come from outside of South America, with Asia and the Middle East particularly large buyers.
"For the nine months ended September 30 2007, Sadia’s total revenues jumped 25%. Net income soared even more, up 156%. Trading a very conservative 12.57 times earnings, I think Sadia’s share price could easily double in 2008.
"Cresud Inc., a more speculative idea, is an Argentina-based grower of wheat, corn, and soybeans. Cresud also raises beef and dairy cattle. Cresud’s revenues for the nine months ended Sept. 30 soared 64%.
"Increased selling & administrative costs held income back though. But the company is now taking measures to streamline costs. I expect Cresud to shine in 2008 as food prices continue to soar. My 2008 target is $27 per share."
