Not long ago, Batista was heralding dividends from EBX companies in 2014, but just pushed that date out by a year. With oil prices falling and Brazil’s growth waning, it’s not obvious how much longer Batista can promise jam tomorrow. For now, investors are left to stew in the EBX juice.

All stocks in Eike Batista’s group show worse performance than Ibovespa, the São Paulo Stock Exchange’s benchmark index, last year and in this beginning of 2013. Ibovespa rose 7.4% last year. Stock prices of the “X” companies fell. The steepest drop was at OGX Petróleo (-67.8%), followed by MMX Mineração (-33.1%), LLX Logística (-28.8%), MPX Energia (-9.3%) and OSX Naval (-7.4%). Ibovespa has retreated 5.8% in the first two months of the year. OSX lost 31.5% in the same period, followed by OGX (-28.1%), MMX (-24.9%), LLX (-16.7%) and MPX (-5.7%).

Here are some of the analysts opinion:

“OGX is seen as a company with cash problems and that depends too munch on the government, as much in operational authorizations as in loans.” – Espirito Santo bank.

“Risks are still too high, I talked with several geologists to better understand the company’s fields and concluded that oil extraction in the areas is challenging, leading to rising costs and production delays. The company only connected its third well in January, with a delay over the initial projection. It has been facing unexpected difficulties.” – Deutsche Bank

“MMX was heavily criticized in our meetings (of our contacts, nobody seems to have invested in the shares), especially because of significant concerns about project execution, management changes and negative news surrounding the ‘X’ companies.” – HSBC

Source: Valor

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5 Responses to Chart: EBX’s stocks performance since IPO… lemons?

  1. frank stein says:

    It is just a matter of time for missing payments to creditors and going belly up. It is a case study in incompetence and hubris.

  2. Anonymous says:

    Encontrei um texto interessante do FMI, publicado em Out/2012 sobre as perspectivas econômicas para 2013:

    Coping with High Debt and Sluggish Growth
    “http://www.imf.org/external/pubs/ft/weo/2012/02/pdf/text.pdf”

    Veja a figura no final da página 13 que também pode ser acessada diretamente no seguinte link:

    Real House Prices across Countries
    “http://www.imf.org/external/pubs/ft/weo/2012/02/c1/fig1_10.pdf”

    Basta olhar a figura para concluir que a bolha imobiliária na Banânia JÁ ESTÁ CERCA DE 4 VEZES O TAMANHO da bolha imobiliária nos EUA em 2007.

  3. Enki Ea says:

    Eike Batista is the “go to” boy for the Worker’s Party (PT). He is the front man for Lula/Dirceu and others as much as Joesley Batista (JBS-Friboi) is the front man for Lula’s son!!! This is known in small circles and there is no question about it. What I mean is: no fable! Its reality!!!!

  4. Jack Ganoza says:

    Not surprising. PBR is in bad shape too. The hubris and pretentious eloquence are consequently fading away.

    I wonder where Lula is now, after declaring oil self-sufficiency in 2007 with such pomposity.

    Notwithstanding the managerial issues and the lack of business prospects, the tide will change only when the long list of structural issues are decisively faced and dealt with. FDI will save the show.

    In the meantime, watch the drama unfold. Don’t hold your breath though.

  5. frank stein says:

    Long list of structural problems are consequence of a long list of cultural problems. That is not going to change. Lula is devoid of shame or ethical sense. He will blame gringos for all that is wrong. Surprise? Thieves rule the country since the 1500s.

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