|52 Week Rng||-|
|P/E Ratio (TTM)||-|
|P/E Ratio (Fwd)||-|
|Div & Yield||-|
largest electric energy company in latin america. Brazil is a major emerging market. The Brazilian government is the majority shareholder, meaning growth should continue at a steady and controlled pace, fitting for diversifying with emerging markets as a big player in Latin America
After further discussion, our group decided to sell our Eletrobras stock due to drought and political risk.
Eletrobras owns and co-owns a lot of hydroelectric dams, and the drought in Brazil is worsening. Itaipu Dam, the second largest dam in the world, is expected to have the lowest electricity output on record this year as a result of the drought. Brazil and Paraguay are currently renegotiating the pricing structure of electricity from Itaipu dam (it produces maybe 18-ish percent of Brazil's electricity last I checked), and the Brazilian side assumes a best-case outcome for them. Any concessions to the Paraguay, which co-owns Itaipu dam, would likely harm Eletrobras' stock price. Finally, with the PANDORA papers floating around there's a chance that Eletrobras gets implicated in another corruption scandal. The last scandal involved the sale of electricity from Itaipu in 2019 and implicated members of Jair Bolonaro's family. I haven't hear anything implicating Eletrobras yet, though.
For some reason, the previous trade got cancelled. As said, exciting because it is Brazil's largest power company and the 4th largest clean energy company in the world.