Nice to see SBS catching fire. I've held it for years thinking it was undervalued relative to other water infrastructure companies. It has grown to the biggest position in my portfolio. Alas this means I will probably need to trim. or at least write covered calls.
FL
U
Buy on today's dip, will only go up from here!
A
Todays Pullback 4-6-22
As I noted a couple days ago, I sold calls. However, I still like SBS. Brazil as a whole is a commodity producer at a time where much of the developed world is worried about commodity inflation. Brazil has in the past sent much of its commodity output to China. China is one of the few places in the world not enacting or contemplating rate hikes. So they want their economy to run hotter. I can easily envision the Chinese economy ramping up commodity imports from Brazil. Finally, the world looks to be facing a food crisis and Brazil and the Sao Paulo region is a major food producing area. All this means that the trade balance looks favorable for the foreseeable future. The Real currency should continue strengthening, removing some of the historical foreign currency debt concerns that have plagued SBS (I think these concerns have been overblown since SBS has toned down its foreign debt dependency). Bottom line is look for SBS to resume the uptrend.
FL
Y
SBS is up 4.95% to 9.85
Y
SBS reached a 52 Week high at 8.33
O
I'm long SBS. Let me explain. The fastest growing economies right now is India, China, and Brazil. Maybe UK is also worth mentioning. Im not looking for a one day pop here. I believe the Brazilian economy will push this back up to 11 or higher 😃
O
Has this stock always payed a dividend?
N
They issued one-year maturity USD250MM debt. It's depressed market cap is USD4.5B. But they lost 3x the notional in market cap on the news. -13.5%. Makes little sense (is it because justice minister resigned??) Picked up a large chunk here
s
I see the news, but feel clueless on why it is taking a dive. Any insight??
A
Jan 14 News From Schwab
Brazil's Bovespa stock index recovered from losses earlier in the session to continue on its record high path, hitting a fresh high. State-run sanitation company Companhia de Saneamento Básico do Estado de São Paulo, or Sabesp, was a big boost to the index, up 6 percent as Sao Paulo officials discussed its privatization.
A
Still trading in a downward trending channel. If it can break 7 then there is hope for a breakout.
z
time to buy !
U
SBS is doing very well despite the real tanking...if the real was at .25 (which it was exactly one month ago) SBS stock price would be 14.35 today.
M
Decline seems too much. There is higher expectation of Brazil central bank interesting rates while also intervening on the currency market as well. This on top of US bonds yields finally declining. It doesn’t make any sense right now and makes me more bullish on SBS.
SÃO PAULO, March 29, 2019 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo - SABESP (B3: SBSP3; NYSE: SBS), one of the largest water and...
SÃO PAULO, March 29, 2019 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo - SABESP (B3: SBSP3; NYSE: SBS), one of the largest water and...
www.prnewswire.com
P
Solid performance and great growth prospects with a recovery of the Real-USD highly likely later this year. This is a great buy right now.
A
SBS is really moving on the election results. Bolsonaro's platform of privatizing large companies to solve the Gov graft and corruption problems, if implemented, would be a complete game changer for SBS. IMHO this is one of the main reasons for the valuation discrepancy between SBS and other higher valued water companies.
FL
As I noted a couple days ago, I sold calls. However, I still like SBS. Brazil as a whole is a commodity producer at a time where much of the developed world is worried about commodity inflation. Brazil has in the past sent much of its commodity output to China. China is one of the few places in the world not enacting or contemplating rate hikes. So they want their economy to run hotter. I can easily envision the Chinese economy ramping up commodity imports from Brazil. Finally, the world looks to be facing a food crisis and Brazil and the Sao Paulo region is a major food producing area. All this means that the trade balance looks favorable for the foreseeable future. The Real currency should continue strengthening, removing some of the historical foreign currency debt concerns that have plagued SBS (I think these concerns have been overblown since SBS has toned down its foreign debt dependency). Bottom line is look for SBS to resume the uptrend.
FL
Brazil's Bovespa stock index recovered from losses
earlier in the session to continue on its record high path,
hitting a fresh high.
State-run sanitation company Companhia de Saneamento Básico
do Estado de São Paulo, or Sabesp, was a big boost to
the index, up 6 percent as Sao Paulo officials discussed its
privatization.
http://www.prnewswire.com/news-releases/sabesp-announces-2018-results-300820883.html
FL