The Brazilian toll-road operator was sold after reviewing the stock. We were struggling to see further upside in valuations given earnings growth over the next couple of years.
CCR is Brazil's largest toll-road operator; it also has the concessions to the best roads in Sao Paulo and along the coast. Traffic volume is rising with GDP and costs are mostly fixed, leading to strong margin and profit improvement. As cash flow increases, so too does the dividend. The company is expected to win further concessions and, as a final kicker, recently won the license to operate a public-private partnership on the Sao Paulo subway.
| Sedol |
Type |
Price |
Date |
| 2840970 |
Sell |
BRL 27.474 |
24/04/2008 |
| 2840970 |
Buy |
BRL 26.443 |
20/03/2007 |
| 
