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Centrais El Message Board

  • FRUCO6 FRUCO6 Jun 1, 2012 6:40 AM Flag

    EBR : value matters

    After loosing more than half of its value as the price of this stock plunges, there might be room for a reaction. This is one of the gratest companies in the world with hydro generating plants in the most powerful river/water systems in planet earth. Yet as it spends about 2 millions per Mega Watt in CAPEX with debt, the investors reduce this value to about a tenth right out of the start of the line. As it grows, the company achieves the incredible, destructing market value asa it creates real ones. The sustems are there, the hydrocentrals, the lines and all of the transmission and distribution impeccably standing. What is wrong? 1. Politics , since the risks are that they may have to bid or loose their concessions anyway. Even after doing the job and risking the neck in the debt market. 2. Backup reports so as to keep the numbers and thei progression in check. Debt vs Ebitda, projected for some years so as to show that the money is there and to prepare for the case where obscurity gives room to get hit further with tariffs that do not support actual growth. Governments like security, and the exposure of strength or weakness of this leading electrical companies is not something to tamper with without ultimate costs. 3. Timely reports. Ok, they need to consolidate many subsidiaries yet delays are harmful and push doen the stock at the wrong time, for the wrong reason. This must change, it is a matter within the companys reach.4. Value creation must return to center given the central significance of this large integrated company. The case is open for a tenfold multiplication if the case just shoots for recouping Capex figures..lit is just too large a move. I will be happy if i see just onefold re oup in the next three years. For the patient investor, it could be ten times. It should if tecnologyg does not hit the case first. We know it will not be nuclear yet.

 
EBR
3.56+0.06(+1.71%)2:07 PMEDT

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