I thought COPEL (ELP) (or Companhia Paranaense de Energia) was trading too cheaply back in December of 2013 and said so here.
Since then, the shares have risen almost 18%, handily beating the
Bovespa (up 5%) as well as beating the Brazilian shares and the ADRs of CEMIG (CIG), Enerbras (EBR), and AES Tiete (OTCPK:AESAY).
COPEL has certainly benefited from selling uncontracted electricity at
high spot prices, but what the rains give they can take away. There's
also a lot of lingering uncertainty about this year's tariff adjustment,
renewal of its distribution concessions, and management's future plans
after a change in the CEO.
Please continue here:
COPEL Has Enjoyed A Good Run, But Brazilian Utilities Remain Tricky
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