“What We Like in the Short Term: CPFE3 and ENBR3. We expect foreign inflow to CPFE3 and local inflow to ENBR3.
Not Appealing in the Short Term: ELET6 and CPLE6. Eletrobras’ involvement in the EDP privatization, and a short-term correction on CPLE6, make these stocks unappealing in the short term.
Long & Short
Long ENBR3 & Short ELET6. The conclusion of EDP’s privatization is expected to generate positive momentum for ENBR3 (even if Eletrobras wins) and negative momentum for Eletrobras (only if it wins).
Long CPFE3 & Short TBLE3. Both companies have great management, outstanding disclosure and appealing dividends; however, CPFL is likely to provide greater growth (through Renováveis).”