What about Usiminas? It has dropped 42% in the last 12 months and is now close to the minimum reached in 2008 crisis. Even through a bad moment, yield is 4.4% and P/E 11. If we consider historical numbers for earnings of 2.5 billions and dividends of 1 billion, P/E would go to 5.5 and yield to 7.5%.
I prefer USIM to GGBR because its debt is lower and USIM plan to invest in ore mining, so its business could become full integrated, as CSNA is.
What do you think about?
Monday, June 20, 2011
USIM5 - Usiminas
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7 comments:
http://exame.abril.com.br/mercados/noticias/o-aco-perdeu-a-forca-na-bolsa-declara-santander
I don't have a clue about how to valuate USIM5 today. I think the company is probably underpriced but I can't say what's the intrinsic value.
Anyway, the market nowadays is becoming more favorable to investors, so pacience will be rewarded.
Interesting to note that USIM3 is about BRL 21 a share, the same level from the beginning of this year. USIM5 was also at that level, but has dropped 30% since then.
I think that's because CSN bought 10% of USIM3 (has tag along).
http://exame.abril.com.br/revista-exame/edicoes/0995/noticias/no-discurso-esta-tudo-certo
The board that Usiminas created to deal with energy issues I've talked about:
Usiminas Energy Board
CSN also bought 10% of USIM5.
I was afraid of buying USIM5 because they could close capital or something like that. But if CSN is there, I think I'll have more.
UBS estima queda de 38% para ações da Usiminas
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