Shares of Taurus, a weapons manufacturer, rose more than 170% in Brazil, a good result but very far from Bitcoin which valued more than 400% in Brazil
One of the shares that gained the most value in 2020 in Brazil was Taurus, a weapons manufacturer that appears in the leadership among the shares that make up the Small Cap Index (SMLL).
However, although the profitability is expressive, it is still far from the appreciation of Bitcoin Champion review in the year that had more than 220% appreciation, in its value in dollars. When compared to its value in reais, Bitcoin had more than 400% appreciation going from R$ 29 thousand at the beginning of 2020 to more than R$ 122 thousand at the time of writing.
Thus, according to a survey conducted by Yubb, in the comparison between the 5 small caps shares with the best performance during the year, Taurus appears in 1st place, with a valuation of 178.30%.
„The shares of small caps companies have a great potential for appreciation at the present time. In moments of crisis, large companies are usually the main ones impacted, mainly by their size. Therefore, the small caps can suffer less impact on the crises, mainly the most sectorized ones“, explains Bernardo Pascowitch, Yubb founder.
Still according to the executive, Taurus growth comes from recently announced measures.
At the beginning of the month, the company declared that it will invest $ 110 mns in its plant in Rio Grande do Sul to amplify the production capacity.
Besides, the stock market government is announcing measures with fiscal reduction for the arms market, which impels the company’s demand and, consequently, values its stocks.
„But it is worth remembering that, at the same time, the federal government tried, without success, to zero tariffs on arms imports and this has harmed Taurus and its actions,“ says the executive.
For João Canhada, Foxbit?s CEO, this brand is something historical and that revealed another Bitcoin surprise in 2020 that doesn’t stops breaking records and barriers.
„Historically who bought and kept Bitcoin for 3 years was on the profit, once more the thesis was proved. Bitcoin finds in this chaotic 2020 the ideal scenario to overcome gold and prove itself as a global reserve currency, with all the qualities of this asset is the big bet to beat inflation and the heavy hand of governments printing money to pay the Covid bill“ reveals Canhada.
Still according to Canhada, part of this high is because of having a lot of institutional money entering the market, more than 30% of every dollar in circulation in the world was printed this year, investors are looking for assets that can protect their buying power, many companies and funds publicly announcing positions in bitcoin, or future purchases on a large scale.
„The high of 2017 was of individuals to 2020 are of legal entities (companies) that are entering the market of cryptomoedas“ concludes.
Weapons on the rise, education on the decline
In the case of stocks in Brazil, while weapons are on the rise, education is on the decline.
Thus, in the five biggest falls, the IRB Brazil heads the ranking, with a 79.04% drop. There were suspicions of fraud in its former board of directors, which may have impacted the fall, but in second and third position are the education companies.