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Centrais Elétricas Brasileiras S.A. - Eletrobras Message Board

  • minarik01 minarik01 Jul 17, 2013 2:32 PM Flag

    just bought in

    This looks like a no brainer right? I mean unless the country of Brazil falters this is going to skyrocket. what am i missing here?

    Sentiment: Strong Buy

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    • I don't know what you're missing. Why don't you tell us what you are seeing instead? Why do you think this will skyrocket?

      The recent upward price moves have been on low volume compared to the downward moves, so it's hard to say what will happen in the near term. It does seem like something worth betting on for the long term as a value turn-around play. But the turn around has to happen. It could "skyrcoket" based on short term trading momentum at any time, of course, but would probably lose its gains just as quickly.

      The debt is simply massive. I'm not sure why no one is discussing how this affects the company and its prospects.

      If the government renews concessions, this is going to lose Electrobas billions in revenues. That is another concern.

      No doubt it is this lingering uncertainty that is keeping the price depressed.

      One thing I am curious about is the book value listed by Yahoo. I wonder if it has been estimated correctly or there is something else that needs to be taken into consideration in calculating it which Yahoo's automatic process misses. It seems hard to believe a company could be trading this far beneath book value. I have rarely seen such a huge discrepancy between market price and BV.

    • Me too. Just bought 2000. Seems seriously undervalued to me (like most Brazil stocks) and world cup plus olympics coming up must be good news.

      Sentiment: Strong Buy

    • Hi minarik ... yes .. the positives are the world cup next year and the Olympics in '2016 ...The world will be focused on Brazil and they have way too much riding on the publicity to do something stupid to ruin these 2 events .. The do love their sports....The negatives are the socialist attitude that wants free #$%$ ... but they are the strongest economy in Southj America.,, But you have to be very patient ....

      Sentiment: Strong Buy

      • 3 Replies to gpls72
      • min ,,, I hope you have patience ,, because this is at least a 2 year hold in my opinion ... but as the old joke says ..""there are only 2 points of downside risk" ,,,, I just can't see the government doing anything to rock the boat because they will do anything to help these Brazilian companies like PBR ..{which they just forgave 2 billion in taxes for them} ....The ""Honor '' of the Country is at stake ... That is a bigger motivator than just about anything when dealing with countries like this .....I hope I did not lead you down a bad road but I think this has to be at least a 400 % gain in 2 to 3 years ...Another very goold sign is there will be very few posters on this board .... and not many will be bullish,,,"" .Buy when there is blood in the streets"" .... John Templeton ,,, {father of mutual funds}

        Sentiment: Strong Buy

      • thanks! i followed your rec from the ONVO board. my patience for it will commence now. ;) have a good one!

      • On the flip-side, the high-profile events increase the chances of government control over EBR. I do not trust that the Brazilian government is worried about shareholder value.

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