 Good day fellow investor! I hope you watched my videos about why invest in emerging markets and why to invest specifically in Brazil, as now I'll discuss a very interesting Brazilian investing opportunity. The company is ELP. It's a company in the state of Paraná. It has been 62 years in the industry's very well integrated generation of electricity, transmission, distribution, energy trading and also communication. Listed on the New York Stock Exchange for more than 20 years, so gifts, a lot of stability. The net income breakdown transmission was the largest source of income, distribution, generation. However, if you just skip to what happened last year, last year generation was the highest segment in net income. This is very important because the structure of earnings is very volatile, but thanks to the diversification in generation, distribution, telecommunication, the company can take advantages of what's going on in the market and relatively adjust and therefore keep earnings stable in the long term, which is very, very important. So it's very good that it is an integrated company. Something very important because another company, Brazilian company Temic, which I will also make a video, had some issues with power plant concessions. As you can see here, power plant concessions are very long term form for ELP. So there is not much risk there. The ownership is also very important to discuss. The company is 58% owned by the local government, the state of Paraná. This is good and bad. The good is that the state likes the profit and likes the dividend. So if they get the dividend, you get the dividend too. The negative is it's always a state company. So there are risks attached to debt. However, there have been some sales of assets and especially Chinese investors like to pay a lot for Brazilian utilities. We'll see. A look at fundamentals will show us that revenue has significantly grown in the last 10 years and was also very important. You might see the blue line like volatile, but earnings, I would say have been stable over the last 10 years. So 2009 crisis, 2015 terrible crisis in Brazil, the company managed to keep earnings stable. And this is the beauty of utilities. Whatever happens, people always use electricity. So their revenue might be lower, costs might be a little bit lower. So utilities, if it's a good utility, you can expect stability and slow long-term growth. A look at valuations will show that even if it's a very slow growth in the future, ELP could turn out to be a great investment. The trading earnings per share are five Brazilian reels or $1.48. Thus, the price earnings ratio is $5.79. To adjust for cyclicalities, one-time items, I always prefer to look at the 10-year average earnings per share, which is $1.19. So the cyclically adjusted price earnings ratio that we also discussed in a video is just $6.63. So $6.63, cyclically adjusted price earnings ratio, it means that the return is somewhere around 13-15% over the long-term. Those are extremely low ratios, which I find very difficult that they persist over the long-term. Thus, a normal market valuation would be a cap of $10-15. This is then already a double. The current book value is $16, almost $17, so the price-to-book value is below $0.5. So it's a cheap stock relation to assets. Again, also the book value is a potential future catalyst. Now, an issue with ELP is debt. You can see that in the last five years here, the debt has significantly increased. However, the debt to equity is still below $3.5, and that's the management's target. Why has the debt increased so much? Because the company did a lot of investments. You can see the capex here. It's more than $1 billion in 2016. Now it's also just shy of $1 billion in 2017, which means that the company really took advantage of the prices in Brazil to invest and to create its own future. Where is the company investing? Well, hydropower plants, transmission lines, windmills, so a lot of interesting investments for the future. The state of Parana is a growing state, so the environment is also really positive. And despite the investments, as I said, the company's own by the state, they like to pay out dividends. Historical payouts have been around 50%, 35%, 27%, so 40%, let's say, on average. And the current dividend yield is about 10%. 2016, almost two reals per share paid out. If we transfer that to US dollars, then we are at 60 cents, which is a dividend yield of around 7%, which is a very, very good dividend. So also, what's very important when you analyze a company is to read the conference called Transkirt or to listen to the conference call. I have read it, and a short summary is the following. So employment is up in the state of Parana. Delinquency rates are down, lower than 1.6%. The company is showing growth in revenue, then they have a nice win for from an agreement with the government on past energy prices, and they are dedicated to keep debt to EBITDA below 3.5 and lower it in the future. So very nice, simple strategy. To sum up, as I said, earnings per share are around $1.2 over the last 10 years. Thanks to the investments, those earnings could really grow if the Brazilian real strengthens as the economy strengthens. That comes later, because for currencies to strengthen, speculation is not enough. You really need economic demand, and we can see that it is turning around to the positive. So those $1.2 of earnings can be gone $1.5 or even $2. When we have $2 of earnings, price earnings ratio, let's say of $15 for such a good stable utility, we're talking about a stock price of $40. Price earnings ratio of $10, we're talking about a stock price of $20. The current stock price is around $8. So you get the potential. The risks, there is always the risk that the turnaround doesn't happen in a global crisis or something, but when you compare the risks and rewards, EOP looks like a good risk-reward investment. If there is a new crisis, you buy more when the stock price drops, because utilities are a defensive sector. As for the company risks, the company is well diversified, integrated utility, distribution, generation, transmission, and if there is some trouble with the debt, you can always sell assets to cover the debt. Sell specific assets, sell a windmill, sell something, which is always nice when you have such a diversified company. The same as Temic is doing now with their sales of Renova. Thank you for watching. 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