But he got me thinking about the one Brazilian stock that has been in freefall - Embraer (ERJ). This is actually one of the older Brazilian stocks out there - it was trading publicly before Brazil was the place all the cool kids hung out. They make (mostly) commercial and executive jets - if they ONLY did executive jets I'd actually be all about the stock as the top 1% in the world are doing just fine thank you. (Some Parts of the Economy are Booming - Like Yacht Building)

Now with oil in the $140s, all things aircraft have been in free fall, but if you believe (like I do) this is a parabolic move in crude that is due for a correction (in a much longer path upward) you might be interested in such a stock.

So those were in the days of crude oil $140 (ah, seems like a lifetime ago) and with everyone convinced oil is now heading for $20... err $10... err $1, the stock has shown a lot of life. Now many of the gamblers in this market run to the airline stocks because instead of losing $2000 on every flight, those companies will only lose $800 on every flight ... and that's a MUCH better business, but perhaps this is a safer way to play the same "cheap oil is back" play.

As I wrote in that piece, the stock is dirt cheap...

ERJ now trades at 10x forward earnings for 2008 for solid 20-25% growth. Again, I am all about investing in anything catering to the ultra rich in the new Gilded Age (people like Blue Dog) - they could care less about gas $4 or gas $10 for that matter. This is why I wish they only did executive jets.

The stock has since rallied and is now near $32, up nearly 20% in the 3 weeks since I pointed it out. Unfortunately like almost every stock in my watch list or in the portfolio it is a broken stock that has only rebounded to hit a resistance level.