This article is a continuation of the article "Ipiranga Should Give Ultrapar The Fuel It Needs." In that article, I gave a bullish recommendation on Ultrapar (UGP) based upon information about Ipiranga, which is the company's service station chain. Ipiranga has strong brand recognition and is number one in perceived value (cost vs. benefit). Also, Ipiranga has the highest customer loyalty in the industry (Brazilian). Ipiranga's customers have a higher tendency to utilize the services they offer, which allows the company to increase sales of value-added products.
In that article, I demonstrated that Ipiranga's