After reading the recent COELCE analysis in Ação e Reação, I have a feeling that in the coming months we'll see the kinds of comments on the media we saw about Cielo and Redecard: "Market overreacted", "Analysts now optimistic", "Great discount caused by excessive pessimism", "Buy" Buy" Buy!".
The price metrics of Eletropaulo and Coelce are so cheap...
It means that Mr.Market is seriously afraid about the regulatory issues.
As he usually overreacts, and the metrics are so cheap, I think it's very reasonable to think that Coelce and Eletropaulo are bargains.
Saturday, May 28, 2011
Are power distribution companies the great bargains in the market?
Under no circumstances does any article or opinion posted on this blog represents any kind of advice, suggestion or recommendation to buy or sell any security. We also do not guarantee the accuracy of any information contained in any posting on this blog.
Related Posts
Subscribe to:
Post Comments (Atom)
2 comments:
http://www.valor.com.br/empresas/1084498/distribuidoras-ainda-tentam-alterar-regras
I think that power distribution companies are far more complex than we thought once.
And it's a huge mistake to consider that its earnings are adjusted by inflation, since there is obvious decline when revisions by ANEEL took place.
See, for example, last analisys of TRPL made by A&R.
Post a Comment
We encourage your feedback and we will take your comments into serious consideration. However, you must be warned that any comment that does not follow the blog philosophy (Value Investing and Behavioural Finance) will be promptly removed.