Home > Boards > Free Zone > User's Groups > Utility Sector Ideas

CPFL Energia - >>> 3 Stocks to Get

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
gfp927z Member Profile
Followed By 59
Posts 19,931
Boards Moderated 56
Alias Born 03/22/05
160x600 placeholder
gfp927z   Friday, 09/28/12 11:23:20 AM
Re: None
Post # of 56 
CPFL Energia - >>> 3 Stocks to Get on Your Watchlist

By Sean Williams
September 26, 2012


CPFL Energia

I figured I'd start us off by looking at a very unloved electric utility company in Brazil, CPFL Energia. The utility has been under pressure recently because of expectations of slow GDP growth in Brazil (just 2% this year) and concerns that the Brazilian government may push to lower electric costs by as much as 10% to curb a further growth slowdown.

I'm looking at things a bit differently. I do see a competitive utility space and possible negative implications from a government reduction in electricity costs. However, over the long term I see Brazil significantly outperforming more industrialized nations, which affords a greater growth opportunity to CPFL. In addition to paying out a remarkably large dividend (which is given out semiannually), CPFL's entire energy lineup is renewable: thermoelectric, hydroelectric, biomass, and wind power plants. With big investments flowing into alternative energy, CPFL Energia is an attractive name that should remain near the top of your watchlist.


Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist