Hm. Not sure what you are referring to. I was suggesting that some may see the delay in the spinoff as a negative. I think the whole matter of the spinoff is a non-issue. Profit generation and conservative debt management is paramount.
Funny how the MMs hit BBD yesterday after they beat earnings estimates yet again. Defaults are up, but the company issued positive guidance. BBD and ITUB are really nice cash cows...
Looks good from a preliminary look:
First-quarter launches totaled R$313.6 million, a 41% decrease compared to 1Q14 and a 30% increase compared to the last quarter, reflecting the weakened economic environment.
In the quarter, 7 projects/phases were launched in the states of São Paulo, Rio de Janeiro, Bahia and Pernambuco. The Gafisa segment accounted for 24% of the quarter releases and the Tenda segment for the remaining 76%.
Are you in on PBR or VALE? I missed the run on both but still holding all other positions (EBR, CIG, GFA, ITUB, BBD, OIBR - very small gamble)
We definitely broke the lower high lower low trend. A little consolidation here would be healthy for the developing uptrend.
Some weekly resistence is possible in the $2.40s zone.
Not tracking too carefully anymore since I'm in buy and hold mode.
R$797m (25%) designated for dividend payments. The 25% includes the comp dividends, Matrix.
I'm not sure how that compares with 2014 payments. Has anyone calculated and run the comparisons yet?
Good report overall. The +28% tariff revision helped compensate for the company having to buy more electricity at spot.
One negative was cash flow. End of year cash generation was R$887m vs. R$2.2b in 2013. OTOH, the stock is significantly cheaper now than it was in 2013.
They're going to have to roll a lot of debt this year. Hopefully all of it is denominated in BRL.
Stock increase. They are issuing 2 new shares for every 10 shares held. Ex-div date was yesterday.Its in the SEC filings.
Also - Brazil's central bank will not extend forex intervention program.
However, the swaps program will remain in effect.
The foreign exchange program has provided investors with a daily supply of currency swaps, derivatives that offer protection against currency losses, since August 2013.
The bank has recently been offering $100 million worth of currency swaps in daily auctions Mondays through Fridays.
Cites increases in electric and gas prices and the weaker Real.
Rationing still an open question. Depends on which city you are referring to. Here's some good news:
"S&P Affirms Brazil Rating as Fiscal Measures to Boost Confidence"
FV right now is $1.21.
I read something in the Portuguese media about the PMDB (opposition party and affiliate of VP) wanting to condense the ministries from 39 to 22. If this is passed it would definitely send a signal to the international community that the govt is serious about cutting costs...
One more thing, nobody likes Dilma or her interventions in interest-rate policy decisions, electrical price setting, Petrobras mismanagement, etc.. Having said that, she is intelligent enough to know that an austerity package is exactly what is needed in these circumstances.
Jonas and Sisula:
Its pretty complicated. Dilma is doing the correct thing by trying to calm international investors by pushing a higher tax/cut spending austerity package through Congress. However, the president of the chamber (who is being indicted by the prosecutors working on the Petrobras corruption scandle) is blocking the measure - possibly in a move to pressure Dilma to call off the prosecution.
Meanwhile, large scale protests, comprised mostly of people who backed the centrist opposition party PSDB are protesting against the austerity measures, because they allegedly don't want to feed the corruption machine. This is very paradoxical because the PSDB normally supports tighter monetary policy while the PT (Dilma's party) typically supports more state intervention (not even close to communism) via price controls and welfare spending.
Though the protestors have a point, the timing couldn't be worse. The failure to move forward on the austerity package, along with lower GDP growth and fears of a country credit downgrade to junk is spooking international investors, fueling currency nosedive, and squeezing corporations and governments who have issued USD-denominated bonds. The currency plunge is fueling inflation. Meanwhile, the China slowdown is contributing to lower commodity demand, which is pushing down GDP. In other words, Brazil is experiencing stagflation. The entire BVSP and the USD/BRL are getting hit.
"With a communist president, a sort of private sector nationalization is always a possibility."
Oh, please, take take your political generalizations to the VALE or PBR board.
Unfortunately more patience is needed here. Once things start to look up (and they will as the lower currency spurs manufacturing and exports) this should move up quickly along with the rest of the $BVSP. In the short term, it is critical that Dilma/Levy get that austerity package through Congress.