Indeed - pretty decent Q. They just need to focus on debt payments, because that is a huge burden right now, and the credit ratings dont like to see all that on the balance sheet. Their earnings are good, they will probably keep the divy at 25% and pay down some debt since quite a bit is due next year.
We will still get a decent chunk this year I expect. I will average down 1 more time, and then ride out the storm until Brazil turns the corner. Itll happen, and stocks like CIG will get back to pre-recession levels.
It's all the dollar and potential for slashing that robust divvy of many years to a mundane 5% or so. I read they are in a countrywide economic slump also but dropping to THIS point? I believe we have a realistic chance of recovery , perhaps a double from here.
Thomson says only 1 analyst covers CIG and their est for FY2015 is 88 cents, Does anyone have ests. from the Brazilian brokers? So, they missed their Q2 eps by 28% according to Thomson, and the June dividend was slashed, but they are still earning money, why is this thing trading as if it were about to file for bankruptcy....?
I don't remember off top of my head but I believe that divy was recorded as a separate line item. This means they are paying out hundreds of millions more through other vehicles for not fully disclosed purposes.
they should pay out less, maybe just the dividend without special dividends and use it for capital improvements increasing the value fast..
i think they paid out about 40% income to shareholders last year.... that would leave 600M for expenses.
the only thing strange or shady is you talking cc on oct 15th?.. last quarter was reported aug 8th and q3 is already disclosed to report on nov 13th.. try scaming another message board you fool..
I agree. This reminds me of Chile back in the 60s. They nationalized Anaconda's huge copper mine and everybody thought the accounts receivable were worthless and Anaconda crashed. This was my first investment with paper route money.
The people got so mad they voted in pure capitalists and threw the former group of Marxists in jail. Chile now has a AA+ (or so) credit rating and we got paid in money which I think was linked to the dollar. Sometimes bad news precedes good. Socialism is through in Brazil after the next election.
Does anyone else find it strange or shady how the conference call person claimed one manager could not speak due to "sore throat" and the questions were simply read by the same person answering? Is this common practice with a brazilian company? Sounded like scam written all over this to me.