When it comes to making money in Brazil, most investors think of oil, coffee, cattle or any number of commodities that underlie the country’s vast resources. But Irwin Greenstein says grocery chain Companhia Brasil Ads (NYSE:CBD) could be one of the best value buys out there.

With the global commodities meltdown, and the news earlier this month of the government’s $152 stimulus package, the word on the street is that Brazil is facing tough times like everyone else these days.

That certainly may be true about most opportunities in Brazil, but one company continues to prosper – making it perhaps one of the great values on both the NYSE and the Brazilian Bovespa exchanges.

The company is Companhia Brasil Ads (NYSE:CBD), and it’s one of the largest grocery chains in the country. CBD manages to capture the synergy of Brazil’s enormous population and agricultural sectors to show a steady stream of positive earnings. Right now, the stock is trading near the bottom of it 52-week range of R$21.26 – 50.50.

CBD is riding a trend of ballooning grocery sales. Brazilian supermarket sales increased in December by 6.1% over December 2007, according to the Brazilian Supermarkets Association.

In 2008, CBD’s French parent, Casino, announced in 2008 expansion plans for the chain. It intends to invest around US$523 million opening 105 new outlets. The breakdown would be 80 convenience stores, 14 cash-and-carry stores, seven supermarkets, three discount stores and one hypermarket.

Market analyst Research and Markets was of the opinion that the supermarket sector could become saturated with major competitors from the U.S. and Europe, the convenience segment was “left open to target high-income shoppers.”

Regardless, CBD seems to be doing things right in terms of market expansion and protecting its home turf.

Sales in 2008 rose 9.0% compared with the year before with the strongest growth seen in the first half of the year.

In its Q3 report issued on Nov. 4, 2008, the company posted gross sales of R$ 5,055.6 million and a net of R$ 4,407.0, with respective year-over-year gains of 22.4% and 26.0%. Same-store gross sales rose by 10.3% and net sales by 13.6% over the same period the year before. And the company posted a Q3 net income of R$ 82.5 million, up a blistering 137.8% over Q3 2007.

Overall, CBD could be one of the best bargains for investors looking for a position in Brazil.