Economy Blog » Cramer Likes Chilean Utility Enersis

Economy Blog
Everything about the economy in a single blog

RSS | Visita nuestra web

Cramer Likes Chilean Utility Enersis

Cramer recommended shares of Chilean utility company Eneris (ENI) as a safe way to play the emerging market growth in Chile. He compared ENI to Brazil’s CPFL Energia (CPL), which is another high-growth utility in Latin America. Cramer pointed out that ENI has a diversified revenue stream with sales split between its power generation and distribution businesses. The company is also an eco-friendly play with two-thirds of its power generation coming from hydro-electric sources. He said the company has future plans to invest up to $5 billion into new projects and for its infrastructure by 2021. The stock has a 2.1% dividend yield and trades at just 19 times earnings, which is a big discount when compared to the average valuation for global utility stocks. Cramer thinks the stock can reach the mid-$20s.
…
Fuente Original