Nu Holdings Ltd. and Latin America - (01/12/24)

Chart of the Day: (01/12/24)

Nu Holdings Ltd. and Latin America

(NU, NYSE)

Open Position: 4.4%

ACB: $8.90

Last: $9.07

Stop: TBD in context of mkt.

• With our Uranium and Met Coal holdings having left the station, and probably having more room to go, what is next?

• Our nightly Stage 2 Trend screens tell us where to look, and a growing theme of late are Canadian REITs and Latin American exposure. I think gold/silver will also become a theme this year.

• One such name was NU Holdings. NU is a bank based in Brazil with an ability to launch new products successfully and prudently, as well as enter new geographies. 

• The financial services disruptor is projected to continue to grow rapidly, as it capitalized on the developing Latin American economy.

• Why not buy Royal Bank instead? Because NU is outperforming in share price and massively so in growth and has a Price Earnings to Growth (PEG) ratio of roughly 0.56X with RY PEG at roughly 6X. A fast growing bank, in an expanding continent opening up for business, vs. a slow growth bank in a G7 country heading rapidly for second world status. 

• NU is in an uptrend above 4 rising moving averages, RSI over 70 confirming the move, and a developing ADX/+DMI Buy Signal. Breaking out of consolidation this week, NU seems headed for resistance at $10.25. Next resistance $12.00.

• Our Chart of the Day is intended to be a standalone technical chart. 

• We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time. 

• It is not a directional market call. 

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