TIM stumbles, since the government to soften the universalization of telephony requirements and be less demanding with the return of expropriated assets, which were Telebras and must be returned to the government.
Government considering merger Hi and TIM
It is known that the Hi pressing the government to allow the slicing of TIM and stick with a piece of it. The government has another idea: to encourage the merger of the two companies. TIM stumbles, since the government to soften the universalization of telephony requirements and be less demanding with the return of expropriated assets, which were Telebras and must be returned to the government. In the distance, President Dilma Rousseff follows the negotiations.
All shares from pr, oibr - common, oibr all will be converted to just 600million shares.
Then you will see the actual run begin.
50 dma is 2.90.
Then 200dma is $5.
Iam so much down with this post is that $4 is just for break even atleast $7 for the aggravation of investing here.
Personally Iam a school of thought that big volume comes only on trend change.
As far as trend goes low volume is good.
Jan 22nd and Jan 30 both showed huge reversals.
OI before PT had debt 1x revenue. PT had 2x revenue.
OI bought PT which was basically a over leveraged business with shady deals.
Now OI has to suffer so the cheap price of $7.
If OI did not buy PT then $25 would have been a better price.
OIBR will be bought out at $7 by TIM.
Now then you need to evaluate the combined companies.
By December price would be around $7.
they are going to pay down $6b in debt after PT sales goes through.
I have 142,000 post split shares and I told myself that I will wait till Dec 31st 2015 before I decide anything.
I no longer follow oibr on a day to day basis.
OIBR has 600million shares or a market cap of $1.2b.
Viv has a market cap of $21b.
When oibr reduces debt the price will shoot up crazy.
My take is wait till the 5th to see what the full balance sheet looks like.
Net loss is only 20cents or 14million.
So Working Capital technically should be down by only 14million but if they had huge capex then this wont show in WC number.
They did not list the current liabilities which was strange.
Where are the current Liabilities, if it is same as last year 70million.
Then Working Capital = 200million or $2.5
So there are lot of moving parts and it looks like the company invested a lot in capex which did not pan out.
So basically shorts were covering as price was going down.
Total Liabilities=Current L for a company with zero debt.
Even if they burnt 20million in Q3 this should not be below $3.5.