Hello friends, in this post I will comment a little about the São Paulo Construtora Eztec played by an Arab family of which I am a partner and also talk about my dividends of the month.
End of the month let’s take a little swing:
Net proceeds received (JCP + dividends)
March 2016 = 1737.93
March 2015 = 2056.48
March 2014 = 609.16
Well, as everyone knows the PT leftist party fucked Brazil the profitability of various companies. This total fall in the macroeconomy ends up affecting the distribution of dividends a little bit as corporate debts have increased, the provision of profits has also risen, and the fear of further economic downturn in 2016.
The dividends received this month were slightly lower than last year because eternit did not pay anything because it is heavily indebted, losing court cases and not selling much. Even though I consider this a very good net worth, in fact, I could pay my condominium (300 reais) + cellular (100 reais) + electricity (300 reais – increased more than 50%) + gasoline (600 reais) + internet (120 reais ) And there would still be something left, that is, part of my accounts could already be paid with these dividends (fortunately still is not the case but one day it will be).
So the dividends will help you live when you get to the right moment. It is a considerable amount almost equal to the value of a rented apartment of 400 thousand reais and without that hassle of renting and paying the broker and finding a decent tenant. If he kept that average would give 24 thousand reais a year almost, not bad.
Well ahead. I am also a member of EZtec as you can see in my portfolio. She is the best construction company to invest in the stock market and maybe the only one that is worth it. Let’s go to the pictures that I removed from the release:
First RELEASE LAW: He started talking about profit = GOOD!
Second RELEASE LAW: Did you start talking about billing = AN?
Third RELEASE LAW: It started talking about macroeconomics, challenges, government, dollar, crisis = IRON!
As well as we know the construction industry is cyclical, and we are in a low season, few sales of real estate, high-interest rates of financing and unemployment or unemployment expectations, so people do not want to be indebted to a property that is a huge debt and to Almost a lifetime or half-life. Eztec is very conservative and has not launched many new properties, besides having a stock of real estate ready to sell and that is half stranded, the stock has a financial and operational cost and it is good to sell soon.
Finally, the net profit for 2015 was lower than that of 2014 and the LPA (earnings per share) also fell, I do not see anything to worry about, profits do not grow forever, it is variable income, profits also vary, what you have That to understand is that many companies are suffering. Eztec still maintains a ROE and a very high and quiet margin and has no worrisome debts, so I’m still a partner. The first and second tables are very explanatory. In the charts, we can see that sales plummeted, not because of the company but because of the conjuncture (here is no way) – selling apartment is not the same as selling bananas. Remember that when you buy EZTC3 you are taking the company in a construction company and you have to know what that means.
If you do not know how to ask your friends, civil engineers or builders, how is the market in their city, already have to eng. Unemployed civilian and driving Uber. So you have to accept the cyclical real estate market to be a partner of any builder or else you’d better put your money elsewhere. Eztec will distribute almost 105 million reais in profits (equivalent to 25%) according to the bylaws. To this day it is one of the companies that I feel more satisfied with investing.
That’s it for now.