Monday, April 18, 2011

FJTA4 - Forjas Taurus

That a look at this and tell me what you think.

Aprovação de Garantia de Aval.

Well, do you remenber the email I sent to Taurus investor relations director? They never replied. I sent it twice. I received only silence.

Now they are, for the second time, endorsing it's main stakeholder debt. For what purpose? What do the other stakeholders gain back? What is Forjas Taurus receiving for this liability?
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(Edited by Sid at April, 18)

From 4Q2010 FJTA Fact Sheet:

  • The company's flagship is fire gun business, that's too risky, and has dropped 30% last year (probably because of weaken dollar)
  • The Achilles' heel is the machine sector, that is indebted and can't earn a dime.
So I'm still waiting for a greater safety margin.

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5 comments:

sid said...

It's very weird indeed. And taking into account that the business is concentrated in guns, I'll demand a bigger margin of safety to buy this shares.

cessna said...

FJTA4 closed yesterday at 4,00. It's approaching an interesting price, despite the issues discussed here.

sid said...

Availability Bias: they're thinking in prohibiting sales of firearms again, after the crazy man shot at public school.
I'm tinking in FJTA, BBAS and HGRE (HGLG I will jut watch for while)

cessna said...

The problem with HGLG is that I don't know what estates they bought or will buy.

I would rather buy HGJH, HGRE or PRSV. All those have been paying about 0,75% each month (and are pretty stable at doing it).

cessna said...

I think people are paying for the growth in the helmets business. FJTA is expanding it's helmets plant, I think, and I don't see the sales falling for many years to come.

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