Scholarship. Hidroelectrica shares stagnate two weeks after the company reported a less than 40% profit in a year. What does this look like for the second semester? Referred to the Assessment of now, Hidroelectricase actions trading in a report between capitalization and net profit 18 times, compared to 12 times to previous reports

Vlad Gheţoi, Equity Research Analyst, Tradeville: the second semester of the year remains uncertain for investors, and the evolution of the shares will depend largely on the company's ability to control the expenses and to capitalize on the opportunities that occur, so that the results are in line with the budget until the end of the year. The actions of Hidroelectrica (H2O), the largest energy producer in Romania, have remained almost unchanged in the last two weeks on the stock exchange, despite decreasing financial results, which reflects, on the one hand, the anticipation of investors to the steep decreases of results, and, on the other hand, confirms the status of the company as a long -term action. However, corroborated with the fact that the company's evaluation has been passing in the last year and the profit has diminished due to drought and higher costs, the ratio between capitalization and profit has climbed, that is, the shares have increased for a company with dividends of 7-8% per year. What does this look like for the second semester? «The second semester of the year remains uncertain for investors, and the evolution of the shares will greatly depend on the company's ability to control the expenses and to capitalize on the opportunities that have occurred along the way, so that the results are in line with the budget until the end of the year,» says Vlad Gheţoi, Tradeville analyst. However, he mentions that the significant decrease in the net profit related to S1 has not determined a major correction of the shares, and maintaining the quotation above 200 days in the last two weeks after reporting shows that the market believes the company has the ability to go further despite the macroeconomic conditions.
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