Cosan (CZZ)
isn’t, and never will be, the easiest stock to own. In addition to a
complicated ownership structure, the company is heavily exposed to
commodity market prices that it cannot really influence and the
volatility of the Brazilian real. Even so, I believe Cosan management
continues to do a good job of managing the business and controlling what
it can; the company’s sugar/ethanol and fuel operations are run quite
efficiently, and management has already shepherded a meaningful
improvement in the Rumo rail operations. In addition,
management has signaled that at the holding company level (the CZZ
shares), they are ready and willing to start returning more cash to
shareholders, preferably through buybacks.
Read the full article here:
Cosan Undervalued On Strong Underlying Execution
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