Chief Executive

Arcelor has lately had to face various difficulties such as strikes affecting its steel production in Mexico. The company lost 564,8 million euros in the second quarter of the year in the same period of 2008 when had achieved a profit of 5,840 million. In the first half of the year, the company accumulated losses by 1,392 million euros, that relate to extraordinary expenses depreciation of inventories and the generation of supplies product to reduce template. Despite the sharp fall in benefits, the Chief Executive of the group, Lakshmi Mittal is optimistic about the evolution of the benefits of the company: if and when there is an unexpected economic decline, should attend an improvement gradually and continuously in the second half of the year, although full recovery remains slow and progressive. I think that too many doubts about the real strength of the main global steelmaker, there are as well as nor prospects of recovery as the global economy to continue its recovery process that translates in a greater demand for steel and the continuity of the improvement in commodity prices. The improvement in results for the coming quarters makes the market according to FactSet wait a loss for all the year of 353 million euros. In the case of Acciona, the company is one of the largest national and international corporations in the promotion, development and management of renewable energy, infrastructure, real estate, services, logistic and transport, and urban and environmental services.

The company is present in 20 countries on five continents and has a staff of more than 30,000 professionals. The company has five main divisions which are oriented to guided functions. The global diversification of its operations and activities without any doubt is an element of value to think that the company can properly balance its risks, and since it works in great development sectors, although they have been affected by the crisis, no doubt they are activities that can provide an interesting return to the company. Repsol, whose book value of each share is in 16,42 euros, newly in yesterday’s achieved its market value exceed the book value reach 16,57 EUR, although the ratio between market value and book value, is logically located almost at 1 (the ratio to yesterday was 1,00914). Not have Repsol, a company that last month announced two important discoveries in other Latin America good for Repsol, capacity enough of benefits for which the value of their shares is located at least a few pounds above? I understand that Yes, especially considering the perspectives of evolution of the price of the oil barrel in the medium term.

They are the actions of these companies market values reflecting what they are truly worth, or we face opportunity offerings? Personally I am inclined for the second alternative. Probably has to do a detailed analysis of the companies but the immediate impression is that their market values should be well above their current quotes. In fact, these shares currently listed between 35% and 65% below values that observed towards the 2007. Original author and source of the article.