The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
http://www.dailymail.co.uk/money/markets/article-2363475/Fresh-controversy-engulfs-scandal-hit-ENRC-Brazil-port-plans.html If somebody is planning to buy ENRC´s project in Brazil , he must think twice before that. It will be a waste of money. This is a born dead project. The only way to make this project come true is giving up the idea of building an offshore port and use the railroads and ports that are already in operation. Brazilian people will not allow the environmental disaster over atlantic forest. I know what I am saying , just as when I told you that ENRC´s share price support level woul be at 200 when it was 300.
As I said before the catastrophic announcements of March 20 th. Support level of ENRC shares at 200 ... It is still time to sell and buy again later.
As I said before march 20 th, I bet on support level at 200 . Sell now and buy again when it reaches 200.
ENRC news from 19 th March 2013 "Attracting new investors could be harder given the two independent investigations under way, one focused on ENRC's Kazakhstan operations and the other on its international business, predominantly Africa." Well , if they focus this independent investigation in Brazil , where environmental lisenses are being sold by brazilian governmental staff, then I should say that attracting new investors would be IMPOSSIBLE. This fraudulent scheme was discovered by brazilian federal police and for those that want to know more about it , search for OPERAÇÃO PORTO SEGURO on google. (The name of police operation that discovered the fraud. The Bahia state governor's name was involved on investigations. This is the state where ENRC wants to build the huge off shrore port over the atlantic forest). The brazilian federal police operation came to media some days after ENRC was granted by preliminar environmental lisense for the project.
Some months ago, the support level of ENRC share prices was 260. As we will have the announcement this week, it seems that the support level will be much lower than 260. Not recommended to buy until it gets lower than 200 . The announcement this week will be catastrophic for ENRC share prices.It seems that ENRC is looking for a better exit in Brazil , after spending millions of dollars in an unviable project over the brazilian atlantic forest in Ilheus - Bahia. Brazilian politicians left ENRC staff speaking alone. Now ENRC is looking for a port that is already in operation to export iron ore. It was the right choice since the beggining , but ENRC chose to believe in brazilian politicians words and wasted millions of dollars with them. ENRC must not complain the results that will be shown this week. Wrong choices , bad results... This is normal...
Sharendipity , could you please be more specific about this agreement?
For the moment, I just would like to understand why a company has a billionaire project of building a huge offshore port when the iron ore price (that ENRC wants to explore in Brazil) came from US$ 200.00 / ton to about US$ 90.00 / ton ! And while its share price came from 1500 to 300 ! Is it viable ? Is this company prepared to spend millions of dollars abroad paying services as providing food to a brazilian hospital , wash the streets of a small town in Brazil or mantaining a brazilian asylum only to gain the lisenses needed to build the project ? Are ENRC´s investors aware about how the company is spending their money ? Are they aware that after years wasting millions of dollars / month in Brazil in an absurd - impossible - unviable project, nothing came true and it still remains as a project on the paper? Seifert, if you want to know more about it , I can provide you with further information about that. The only thing I say is that I would never invest my money in a company that would spend it that way. Seifert, it was very good to receive your reply and I would like to keep in touch with you to exchange more informations about the company and the unviable project in Brazil called porto sul... I would like to understand what kind of corroborating evidence we need for a situation that is public in Brazil and everybody that lives in Ilheus - Bahia knows it. We will be in touch !
ENRC is wasting a lot of money in Brazil. Now there are strong rumors in Brazil that ENRC is closing down its office in Ilheus - Bahia. ENRC started dismissing employees last month. ENRC believed on brazilian politicians promisses and ,for brazilian corrupt politicians, it was like taking a bubble gum from a child's hand.ENRC's project of building a huge billionaire off shore port is unviable. Ambientalists and public defensors would never allow that kind of crime over the atlantic forest... And brazilian politicians know that... Only ENRC believed on their words and spent millions of dollars to make those politicians happier.
ENRC has a subsidiary in Brazil called BAMIN (BAHIA MINERAÇÃO) . An iron mine was bought by them but there is no way to export this iron from Caetite - Bahia nowadays. There aren't trains to transport the iron for a harbour on brazilian coast. The iron from this mine is a third class iron (33%) ,but they keep saying that it is a high quality iron... Only one more lie told by ENRC. And more, the iron mine has only 15 years of life. After 15 years of extraction, the iron ore will finish there. So, ENRC / BAMIN is delaing with brazilian government (the most corrupt in the world). It was dealed that ENRC / BAMIN will build the offshore harbour while the brazilian government builds the rail road. Only the offshore harbour construction is a project of about 4 BILLION DOLLARS (before corruption taxes). After 4 years, only 10% of the railroad was built and corrruption is , of course, making things harder and harder to continue the railroad construction. The construction of the rail road and the offshore harbour was going to be done in a very important forest in Brazil , the atlantic forest , and the ambientalists are fighting against this project since it was publicized. ENRC keeps putting money on this project , helping the politicians of the town of Ilheus in Bahia with some millions of dollars to keep the project idea alive. Every penny that ENRC is putting in Brazil will be lost. This project will never come true. Politicians will drain out all ENRC money if they can. Ambientalists will never allow the project to be done.... And now the worst part.... There is a rail road that already exists and it passes only 100 kms away from the mine in Caetite town and goes directly to Aratu harbour that has been in operation for a long time in Salvador , the capital of Bahia State. ENRC / BAMIN says that the rail road is too narrow to be used to transport iron ore ....Well , if you already have a rail road that goes directly to a harbour from where you could export it , why won't you invest on this part , in despite of wasting billions of dollars to build a new offshore harbour in an area that will never be allowed by ambientalists ? Why don't the investors of this company asks ENRC for an answer?
ENRC WASTED MILLIONS OF DOLLARS IN A BRAZILIAN PROJECT THAT WILL NEVER LEAVE THE PAPER. THEY WANT TO BUILD AN OFFSHORE HARBOUR USING AN AREA OF ATLANTIC FOREST IN ILHEUS, STATE OF BAHIA - BRAZIL. THIS AREA IS ONE OF THE RICHEST NATURE AREAS IN THE WORLD AND THEY ARE FINDING HUGE RESISTENCE FROM LOCAL AMBIENTALISTS. THE CORRUPTION IN BRAZIL IS VERY WELL KNOWN ALL OVER THE WORLD AND THE INVESTORS OF THIS COMPANY SHOULD BE AWARE OF THAT. THERE IS A SCANDAL GOING ON IN BRAZIL INVOLVING SOME BRAZILIAN GOVERNMENTAL DEPARTMENTS THAT ARE EXPEDITING POSITIVE REPORTS FOR PRIVATE COMPANIES THAT ARE LINKED TO HARBOUR CONSTRUCTIONS ON IMPORTANT NATURE RESERVES. LITERALLY, THEY WERE SELLING POSITIVE REPORTS IN A HUGE AND EXPENSIVE CORRUPTION SCHEME. ENRC IS OWNER OF BAMIN (BAHIA MINERAÇÃO) IN BRAZIL. SOON BAMIN'S NAME SHALL APPEAR IN ONE OF THESE CORRUPTION GOVERNMENTAL SCHEMES FOR POSITIVE REPORTS ON HARBOUR CONSTRUCTION . AND THIS WILL BE THE END OF HISTORY ON ENRC DREAMS IN BRAZIL. BRAZILIAN FEDERAL POLICE IS INVESTIGATING THIS CORRUPTION SCHEME WITH THE NAME OPERAÇÃO PORTO SEGURO (SAFE HARBOUR OPERATION)... SO , INVESTORS, YOU MAY TAKE CARE WITH THE SHARES OF ENRC COMPANY.