Anyone know what is going on? The PR appears to be very poorly worded in that it refers to restructuring (a term often used when BK is being considered). In this case I think the restructuring refers to the shareholder structure (The State of Sao Paulo selling out their shares). If this is done via the public exchange in a short period it could put a lot of shares on the market in a short period and act as a short term drag on the share price. Hopefully they would solicit an investment banker to do some public and private placements over time so that it would not flood the market with shares. Either way down 8.5% in the afterhours, so the market does not like it.
Am I reading it wrong when I think that steps to privatization might be short term bad but long term good?
Any thoughts.
FL
0
Y
SBS is up 5.49% to 6.34
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.
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
Y
SBS is down 5.66% to 6.09
m
bought back in 2018 at $6.70. Intended to hold. Still think it is worth consideration. Guess I didn't complain as it went up - can't really moan about the dips...
L
Honestly, Don't think that Doria can get it done before the end of his term...but who knows!
s
I actually thought the earnings we're good!!?? What did I miss??
Am I reading it wrong when I think that steps to privatization might be short term bad but long term good?
Any thoughts.
FL
0
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