Brazilian bet beset by regulators
Global Investment Strategist recommends, with reluctance, selling Companhia de Saneamento Basico (NYSE: SBS), more commonly known as Sabesp. The company supplies water and sewage services. While its construction expenses to help Brazil prepare for the World Cup hurt earnings, they’re a temporary drag that will reap benefits in the future. The company has many positives, including being an exceptionally good value right now, but lumpy earnings and capricious regulators have kicked it out of favor with investors.
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