Huge short positions? Total short is 4%. That's normal. And with nice dividend this will stay put at these levels and start moving up towards divvy date.
Brazil’s Finance Minister Guido Mantega announced a tax credit for industry that he says will reduce the tax burden for companies operating abroad without compromising government revenue.
The government will give a tax credit of 9 percent of earnings abroad to all Brazilian industrial companies, including miners such as Vale SA. (VALE5) The credit, which takes effect in October, had been restricted to the construction, services, food and beverages sectors.
Previously exporters had been obliged to pay in Brazil the difference between its 34 percent tax rate and their foreign tax rate, which averages about 25 percent, Mantega told reporters yesterday in Sao Paulo.
“This won’t have any fiscal impact because there were companies bringing lawsuits at the same time the tax agency brought actions, so you didn’t have any tax collection,” Mantega said following a meeting at the National Industry Confederation. “Now they’ll pay what they didn’t pay before. We’ll even have an increase in tax collection and fewer lawsuits.”
Government revenues are flagging after President Dilma Rousseff’s administration granted billions of dollars in tax cuts to industry, which is in the throes of recession. Business sentiment has plummeted before presidential elections in October, with Rousseff running for re-election.
The tax credit will improve companies’ competitiveness abroad by relieving them of a burden that other firms operating in the same countries don’t face, while simplifying their tax situation at home, Mantega said.
“He’s trying to make something more market-friendly, make it better for companies,” Andre Perfeito, chief economist at Gradual Investimentos, said by phone from Rio de Janeiro.
Mantega also announced that the tax benefit program known as Reintegra would grant exporters a 3 percent tax credit on their export revenues in 2015.
Big exporters like miner Vale will benefit from the 9 percent tax credit, and the company’s shares will tend to increas
Seems like the flush at 3.93 calls it a bottom. Volume usually spikes during a flush. And it did as you can see in the chart.