It has given up almost 35% of its value since the start of September and now trades at 4.7 times the company’s trailing 12 months’ earnings and less than 1 times sales. At these levels, the American depositary receipt (ADR) yields more than 7%.
CEMIG has also added transmission infrastructure and renewable-energy resources in late October, securing antitrust approval to buy half of a giant 676.2-megawatt wind farm.
With a debt-to-assets ratio of 31.7%, excessive leverage isn’t a problem, either. Rather, CEMIG’s stock is cheap because of what Brazilian regulators may do to address the hydropower-dependent country’s worst drought in 80 years. (more)
Please share this article
No comments:
Post a Comment