High risk but potential high reward

Gafisa (NYSE:GFA) up 3.32% today, is Brazilian home building company. After a building boom in Brazil that led to a housing glut, Brazil`s housing sector is retrenching. Due to the expected economy boost from the World Cup and Olympics in coming years, the housing market should turn around in around a year. In the past 18 months this stock has dropped from $18 to $4 which made this favor stock come into value territory. Shares now trade not far above book value of $3.31 a share. But this figure has been greatly marked down due to write-offs that likely undervalue Gafisa`s real estate holdings when the Brazilian economy turns back up.