Friday, July 22, 2011

Why I can make money

I'm not a smart guy but I'm greatly happy to be surrounded by dumb people.
Look what happened with Mundial, a piece of shit that worth nothing.
  • It has been trading for 30 cents since begining this year;
  • Then, some crazy optimism soared company share price to above 5, an increase of greater than 1.500% in less than 3 months;
  • With that valuation, company multiples were: P/E of 130, P/BV of 15 and EV/EBIT greater than 60 (high indebted company);
  • During the gold time, average volume was nearly 200 million, one of the greatest of Ibovespa;
  • So unexpected pessimism dropped prices over than 85% in just 3 days!
Also worth reading this article. Following are some highliths:
The euphoria is such that the share of Mundial, that was by the end of last year ignored by major investors, has become one of the five most actively traded of the session - on some days, even surpassing Petrobras.
If was the expectation of been acquired the reason for the Mundial phenomenon, how to explain it? There, according to the company's board, a more prosaic origin. For the official version of the company, its stock price is due to a series of visits that its directors have made the funds and brokerages. 
Whatever the quality of air that inflates the bubble of the clamp, Mundial definitely entered on the radar of Brazilian investors. A report from Santander provides that Mundial will enter the group of large companies that comprise the Bovespa Index, even though revenue of just 365 million in 2010.
So you can comfortable expect to make money, dumb people will give it to you! Don't even worry about.

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3 comments:

cessna said...

Cheers to stupid people.

cessna said...

I'm taking a look at BEMA3.

The company seems interesting. It's a matter of price.

sid said...

BEMA3 has a high cash flow. Nearly all its earnings is free cash.

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