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I believe the consensus revenues for 2009 and, particularly for 2010, is too conservative. I continue to believe in the expansion of infrastructure investmnets in emerging markets, particularly Brazil, and I also believe that the apreciation of the Brazilian currency is a lasting trend. In such a scenario, I expect positive surprises for Sabesp's revenues in the following quarters.

I believe 2009 earnings consensus is highly undervalued. First quarter numbers were very encouraging and the continued appreciation of the currency can only help, reducing interest expenses and increasing revenues and earnings in U.S. dollars. Consensus for 2010 seems more reasonable, however I do not rule out positive surprises for 2010 too. This is one of the most undervalued stocks in terms of P/E, it is a great investment case.