Gustavo Ballvé on August 30th, 2012
Banks, Capital goods, Food for thought, Home, Industries, Investment Themes, Logistics, Mental models, Portfolio Management, Real Estate, Risk management, Signal or Noise, Utilities

Two quick articles: a relatively thorough, if superficial, article in the Financial Times about Brazil’s construction and infrastructure boom in the next few years. They did interview a lot of people, just perhaps too many interested parties.

Another is a cautionary tale about things that “happen all the time” – until they don’t: many investors, having seen what happened with recently-IPO’d “internet” stocks after the lock-up period ends (the shares tend to fall, emphasis on “tend”), shorted Yelp.com ahead of its own “lock-up crisis”. The stock went up, which caused shorts to cover, which caused the price to go up even more, which forced more shorts to cover… the classic short squeeze ended with Yelp up 22.5% on Wednesday. Ouch.

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