I promised, in an older post, to take a closer look in Contax.
The first thing I saw was a recent change in the controller group. BNDESPAR, PREVI, PETROS and FUNCEF ceased to be shareholders of CTX, increasing the domains of Telemar. I also saw in the reference form that Oi stands for more than half Contax revenue. It's too much conflict of interest with a low safety margin.
Besides that, Atento, from Telefonica group, announced that are planning to make IPO. And Csu Card System is seriously commited in grow in contact center. So I ask, for how much time should Contax be able to maintain that beautiful return?
I'm out for now, at this current prices. I would prefer to take something at a discount, when most think is going to be wrong.
5 comments:
CTAX has released its results for 3Q11.
Earnings dropped to only BRL 10 mi, due to personnel expenses that occurred in January, which have not yet had its counterpart in revenue.
At least that's what they usually say now.
I bought CTAX4 at 20,00
Poor results published today: net income of 5 mi.
At current market level, I would prefer big companies.
That's why I haven't increased my position in FJTA yet.
Considering:
-Current drop in prices
-Increased pessimism in company future
-FCF Analysis (BRL millions): 100 income + 120 depreciation - 35 investments just to maintain revenue (as reported by company) - 30 investments in work capital = 155 millions (13% of CTAX)
I think I'll buy CTAX3 tomorrow
I start buying CTAX4 at 18.85
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