just bought this based on the chart set up. I know little about the company except from what I have read here. What does the recent announcement about the compensation rates being hiked by 50% mean for this company. I see a lot of shorts that must have been taken out by Fridays news. What should be expected here as a long?
No one can be exactly sure what would happen with the stock from here. If I had a time machine I would go back to 2008 and buy 100,000 shares of Pier 1 Imports for $10,000. Early in November the Brazilian government announced that it would give EBR compensation much less than previously thought in exchange for lowering electricity rates by 30%. This was one of the MANY reasons why the stock tanked. So when the Brazilian government announced that it would increase its compensation for EBR the stock was presented with good news for a change which attributed to the rally on Friday. But keep in mind almost all analysis that I have read give the stock either a hold rating or a sell rating (mostly sell) with very few giving a buy rating. You are taking a very big risk by holding a position in the stock at this point in time.
As I can see this is gonna be a very shaky trade. Not a hint of conviction or follow through from Fridays action so far..still early. Looks way way oversold however the real world dictates the price not charts.
looks like i am the only fool that bought in here. Fridays action must of just been a short covering move. not sticking around for long after todays lack of action and follow through accompanied with expected margins for the next decade. considering this is owned and operated by the government i see no transparency or truth in what the value is here. any longs here?