There's a lot more to Cosan Ltd. (CZZ) than sugar, but plunging global sugar prices are dominating the story at this Brazilian conglomerate and likely to continue to do so for the time being. Although the company is executing well in its fuel distribution, ethanol, gas, lubricant, and rail operations, sugar is a significant source of earnings, and there is only so much management can do to offset a global supply glut.
Even factoring in the weak sugar price outlook, Cosan Ltd. shares look significantly undervalued. Unfortunately, near-term sugar prices have long had