Hering, Homex, Organizacion Soriana, Vivo: Latin Equity Preview

By William Freebairn

Oct. 15 (Bloomberg) -- The following companies may have unusual price changes today in Latin America trading. Stock symbols are in parentheses, and share prices are from the previous close. Preferred shares are usually the most-traded class of stock in Brazil.

The MSCI Latin America Index rose 5 percent to 2,488.98 yesterday.

Brazil

Cia. Hering (HGTX3 BS): The Blumenau, Brazil-based textile company with retail stores will ``deliver solid earnings growth rates'' in 2009, Banco Santander SA wrote in a research note e- mailed yesterday. Hering will benefit from new product lines, better assortment of goods and the start of its credit-card program, analysts Joaquin Ley and Renata Coutinho wrote. Hering rose 2.2 percent to 6.49 reais.

Vivo Participacoes SA (VIVO4 BS): Brazil's largest mobile- phone company will borrow 389 million reais ($185 million) from Banco do Nordeste do Brasil to expand in the country's northeast, according to a statement Sao Paulo-based Vivo posted on a regulatory Web site yesterday. Vivo, owned by Telefonica SA and Portugal Telecom SGPS, was unchanged at 28 reais.

Mexico

Desarrolladora Homex SAB (HOMEX* MM): A decline in shares of Mexico's biggest homebuilder is a ``good opportunity'' for investors to buy, Actinver SA analyst Ramon Ortiz wrote in a research note e-mailed yesterday. Controlling shareholders reduced their stake to 37.9 percent from 40 percent following a margin call on a loan used to buy shares, the company said in a statement yesterday. Homex fell 6.4 percent to 51.82 pesos.

Organizacion Soriana SAB (SORIANAB MM): Mexico's second- largest retailer had its debt rating cut to non-investment grade by Moody's Investors Services, which cited the supermarket chain's increased use of short-term debt. The long-term debt rating was cut two grades to Ba1, the highest non-investment level, from Baa2, Moody's said in a statement yesterday. Soriana rose 3.2 percent to 27.89 pesos.

To contact the reporters on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net.