So far so good
Just to let everyone know, I am working on this blog but the things I am doing are mainly aesthetic. I added the about page and the disclaimer page allowing the home page to be more user-friendly.
Was looking into some old prospectuses of AES Tiete and of CCR. I have not found much as on now on AES Tiete but on CCR I notice that they did a follow-on in Sept 2009 and in June 2010. The first was used for working capital purposes and the other for Debt Payoff. This makes me believe that the CCR was having an FCF issue for almost two years which makes me ask, why in the world are they paying out dividends for more than the mandatory 25%? A quick answer is related to the who controls the company as seen here but it could be related to the debt to equity guidance by the company.
I am working on a probability tree that will analyze what will happen to a company's stock if they do a secondary offering. This is something that you must think about if you are not used to Brazilian companies. I have seen companies do a secondary offering and then three or four weeks later convert their debentures into shares as seen in this article. The funny thing is that the CFO said that the company would not issue any more shares (as seen in this article) in response to a rumor that was floating around in the market saying something of the sort. What the market and I didn't know was that the rumor was partially true.
Was looking into some old prospectuses of AES Tiete and of CCR. I have not found much as on now on AES Tiete but on CCR I notice that they did a follow-on in Sept 2009 and in June 2010. The first was used for working capital purposes and the other for Debt Payoff. This makes me believe that the CCR was having an FCF issue for almost two years which makes me ask, why in the world are they paying out dividends for more than the mandatory 25%? A quick answer is related to the who controls the company as seen here but it could be related to the debt to equity guidance by the company.
I am working on a probability tree that will analyze what will happen to a company's stock if they do a secondary offering. This is something that you must think about if you are not used to Brazilian companies. I have seen companies do a secondary offering and then three or four weeks later convert their debentures into shares as seen in this article. The funny thing is that the CFO said that the company would not issue any more shares (as seen in this article) in response to a rumor that was floating around in the market saying something of the sort. What the market and I didn't know was that the rumor was partially true.
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