Gafisa SA (ADR)(NYSE:GFA) Marks Regrowth


Dallas, Texas 03/31/2014 (FINANCIALSTRENDS) – Gafisa SA (ADR)(NYSE:GFA) the south American real estate company it appears is all set for a restructuring and regrowth phase for the current fiscal. In recent press release the company has been mentioning the strategy forward, which will help the Brazil-based residential buildings company to establish itself as the first choice, given the economic conditions.

Positive indicators Gafisa SA (ADR)(NYSE:GFA) it cannot be denied is the largest of the Brazilian residential construction companies. In the past few quarters, Gafisa has all the indications of a company on a regenerative wave. The quarterly results itself of fourth quarter of 2012 as well as the ensuing quarters thus far have been promising. Besides it also looks to be making cash earnings, revenues which itself is a noticeable feature.

Forward-looking goals Incidentally, the positivity with the organization and the goals set for the coming fiscal is a clear indicator of the confidence and the pipeline of projects are likely to deliver by the ambitious guidelines suggested for the coming quarters.

Gafisa SA (ADR)(NYSE:GFA) has set itself two goals to achieve by later this financial year. One it hopes to have a balance sheet, which is in the positive and second it hopes to create enough cash within the organization to handle the ongoing projects. This is probably the strategy to ensure the company remains away from the challenges of debt and further dependence on external borrowings to sustain the current projects in development phase.

Home-owner cycles likely to be positive for Gafisa SA (ADR)(NYSE:GFA) since it has been riding the home-owner cycles through the high and the low. Recently, given the extensive upside seen in the real-estate industry, it is likely that things may look positive for the same reasons.

Gafisa SA (ADR)(NYSE:GFA) is expected to see a turnaround, banking on the rate of interests in the country. Besides, the company is structured vertically, and will therefore see growth when any of the segments indicate growth.