Votorantim Celulose e Papel S.A. (VCP) announced its 2Q 09 results1 on 17 July 2009. Although the company reported moderate y-o-y growth in revenues, the bottom-line soared due to hefty gains from foreign exchange transactions and equity earnings from Aracruz Celulose S.A. (Aracruz). However, considering the company's large debt burden, as well as the sharp rise in the ADR price seen over recent weeks, we still view the company as heavily…

The Votorantim Celulose e Papel S.A. (VCP) ADR has appreciated significantly since our last update, as investors reacted positively to data suggesting that the pulp market may have bottomed out. Nevertheless, our fundamental outlook remains unchanged. Therefore, considering the recent surge in the ADR price, we downgrade our 6-12 month rating from a HOLD to a SELL. We will reassess our ADR (1 ADR = 1 Brazilian preferred shares) rating after the company releases…

Votorantim Celulose e Papel S.A. (VCP) announced its 4Q 08 and FY 2008 results on 31 March 2009, noting that lower pulp demand and unfavorable exchange rate movements have negatively impacted its bottom-line. However, at current levels, we continue to see upside potential, given the company’s relative cost advantage and the fall in the ADR price since our last update report. Therefore, we reiterate the…