CREDIT CRUNCH! For a utility that spends spends spends, that is a killer
they have preemptively taken every single dollar form their existing lines of credit before they got cut off. No new ones coming. They may run out of cash before any of the fire responsibility issues get resolved.
I smell a bailout, or some kind of government intervention for sure. Kiss the dividend goodbye…
Huge macroeconomic risk = True, My trust is on Warren Buffet team. To my knowledge, they never invested during IPO time. Looks to me a surprise and I assume they would have done all the research before entering into.
For example, how many months (with few millions budget) our company takes to implement a project and how many meetings, analysis during the project cycles to ensure that money invested meets the goal of the project.
Before investing millions/Billions, Berkshire team would have researched enough before entering any companies (but still can go wrong like some of our projects) as their amount is always big.
This is why I trust them than any other investors as their success rate (70%-80%) is higher.
STNE and PAGS are leaders in Brazil. (PagSeguro Digital Ltd. (PAGS))
When the stock came below their paid price $24, it is attractive now. We have a chance to beat him too !