Monday, 5 October 2015

Shanta buys ABEV 5.09: As for the other relatively high scorers each of them has something that is an immediate no for me.

The markets are still bleeding so there is no rush. The only two companies that catch my eye are ELP (descriptions in the following chapter) and CIG. Book values are above share prices in most of the cases and PE ratios, if positive, are high above an investable level for a country that has a junk rating. I will leave out banks as those are not my specialty. Such a situation with the current political unrests can quickly erode into a spiral of bad news that can affect even the most healthy businesses.


Marilou:
Low borrowing costs bring to high debt levels and high debt levels bring trouble as soon as the sentiment shifts from very positive to stable.

Justina:
This shows that Brazil is building a tradition of transparent reporting that is very important for the potential of their financial markets and also for their stocks traded on US markets.

Val:
Earnings calls transcripts are mostly available on Seeking Alpha and the financial statements in Portuguese are very detailed.

Tawnya:
One thing related to Brazil that I like very much are the accounting standards and disclosure policies companies have.

Zada:
Of course, only if you are a person like Buffett who prefers investing when there is blood on the streets.

Erin:
This means that there is enough blood on the streets to contemplate investing in Brazil.

Charlette:
If to this we add the 60% depreciation of the Real in relation to the US dollar in the same period we come to a total loss for US dollar oriented investors of 73% in the 5 year period.

Alexa:
The effect of the past bad news can be seen in figure 4 with the Ibovespa Brasil Sao Paulo Stock Exchange Index.

Hassie:
Market or it is fundamentally sound.

Brittanie:
The main question an investor has to ask is if that turbulence is just a wrong feeling from Mr.

Ambev S.A. (NYSE:ABEV)
//stockhand.net/us/?q=nyse%3Aabev&id=544965

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