Founded in 1969, 46 years ago and still losing money.
ERJ should be making huge profits with input materials now about 50% of what they were just 2 years ago.
The money might be going into some drain pipes leading to bank accounts.
Brazil has too much corruption resulting in too many questions.
Brazil has too much government, about 40 percent higher numbers than USA or Europe per capita.
Due to too much government absorbing 40% more of the economy than more advanced countries, companies like ERJ just feed the government in all forms of payments, taxes, other stuff.
Most Asian countries where corruption and questionable numbers were horrible 20 years ago, Asian countries, have now cleaned up their act (including India). China numbers really don't exist (determined by what they want the numbers to be). I guess Brazil is in the same boat.
Difference: India is a place where you can invest even with its corruption. Brazil is not... yet.
Makes zero sense to me when commodity prices are near record lows such as copper, steel, aluminum, plastics, energy.
The economy of Brazil is in deep trouble.
You would think Brazil would step up to the plate and maximize this input cost advantage to its fullest.
Why cannot ERJ come through with record sales and profits utilizing the cost advantage?
South America appears far too corrupt to invest in based on history, particularly the "disappearing" Brazilian stocks that wither into never never land of nightmare financials.
Brazilian companies have this habit of splitting stocks until they go to penny stock prices and then disappear. Could be related to the oddball financials combined with trying to make them even more obscure by doing splits. TNE disappeared from a $25 stock to two OIBR and OIBR-C, both of which are about to disappear into never never land of Brazilian financial jungles.
Brazil needs to clean up its act. So does Chile. Their equivalent to SEC is likely complicit.
Even the banks appear to have strange balance sheets and messed up financial reporting.
I'd wait for Brazil to stabilize. Same with Chile. Even fertilizer companies like SQM are prone to corruption. I have now predicted SQM will disappear.... a long time, pre-corruption, quality producer of lithum and an excellent product suite of agriculture nutrients.
It could be decades before these countries eliminate corruption and fraud to the extent they attain Asian respectability. Even India is far more transparent.