Time to buy stocks on Brazilian markets    

After the last events on economy, we have seen a downside movement on the prices of stocks worldwide. Now we can see some real bargains on the markets. Highly profitable companies can be bought at fair prices. Some sectors can be listed: Banking, Iron ore and Steel producers. Also the energy and retail companies remain underpriced as stated below.
"Who passes the storm will see a very beatiful sky"
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The power of growth

"We’re talking about of an EV/Ebitda rate (2012) of 6,5 times, considered the current quotations. It seems like a bargain, since it’s about a retail company, with consistent description of profits and growth. The average of the sector for this multiple would be something around 13 times. If we consider potential gains of liquid edge, the potential of the stocks would be even greater…"

Earnings of 472 millions in 2010

Brazilian company Coelce (COCE5) released its results of 2010. The Company is responsible for the distribution of electric energy in the State of Ceará, in an area of 149 thousand square-kilometers, that comprise a total of 184 cities. The commercial base of the Company encloses 3 million consuming units approximately, and involves a population of 8,5 million inhabitants. In 2009 and 2010, it was elect for the ABRADEE as the best deliverer of electric energy of Brazil.

The main points had been:

The volume of energy sold and carried by Coelce reached the sum of 8.815 GWh in 2010, 12.8% superior to the volume registered in the previous year.

The EBITDA, in 2010, reached the sum of R$ 807 million, an increment of 24,4% in relation to the year of 2009. With this result, Edge EBITDA of the Company locked up the year of 2010 in 28,3%, superior percentage in 1,50 p.p. compared with the previous year.

In 2010, the Net profits totalized R$ 472 million, 19.5% superior to the year of 2009. As consequence, the Liquid Edge of the Company reached the 16,6% platform.

(see more in H6 invest)