Rally Fades for Brazilian Gunmaker
- Forjas Taurus is down 55% since Jair Bolsonaro’s election
- Stock’s recent gains decoupled from fundamentals, analysts say
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All the euphoria surrounding Brazil’s hottest stock seems to be fading -- and fast.
Over the past few months, Brazilian gun-maker Forjas Taurus saw a surge in its shares as former Army captain Jair Bolsonaro rose in the polls ahead of Brazil’s general elections. The far-right politician’s pledge to loosen the country’s gun laws fueled investor optimism with the Sao Leopoldo-based firm. Forjas Taurus’s market cap more than quadrupled and the stock accumulated a 412 percent year-to-date rise through Oct. 22, while its trading volume soared.