zippy1 Posted January 25, 2013 Share Posted January 25, 2013 Has anyone looked at this Brazilian power company? The price fell from $18-$19 down to $10-11 after the government required power price cut by16-28%. But is the sale overdone? Noticed that Oaktree bought some stake in Q3.. Link to comment Share on other sites More sharing options...
petec Posted January 25, 2013 Share Posted January 25, 2013 I have looked but not in depth. I regard utilities generally as high risk and ones that are part state owned as very high risk. When the Federal government gets in on the act as well... I think you need to understand the local (state level) politics well to be comfortable with this - and don't forget that the whole sector outperformed massively in Brazil over the last few years until the concession issue this year, partly because of falling local interest rates. If inflation picks up, that could reverse rapidly. That said I don't know it well so do dig in! Did OAK buy equity or bonds? Link to comment Share on other sites More sharing options...
zippy1 Posted January 25, 2013 Author Share Posted January 25, 2013 Petec, Thanks. OAK bought equity. Link to comment Share on other sites More sharing options...
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