Wednesday, 11 February 2015

OIBR - Sell or Hold

I have been trading OIBR for a couple of years and made some profits along the way. But last year, I was not quick enough to sell when I have a little profits and now I'm stuck with this stock. The worst part is that it has undergone consolidation to avoid a delisting from the NYSE.

I bought at around $1.60 and then it went up but I didn't catch it to sell at that moment. After a while, it dropped to below $1 and then towards $0.4. After consolidation (10:1), the stock went up to $3. Now it is trading at about $2.09. I'm thinking of selling it but since I have already lost 90% of the value, I might as well hold it till the end. So what is the end? Maybe another consolidation (split 10:1) or more shares dilution from issuance of new shares to investors. I don't know but recently, the Brazilian phone company Oi SA is going to price its shares as part of an offer to merge with Portugal Telecom. The company may authorized the issuance of up to a maximum of 7.8 billion in new shares. This may happen in April and then there may be price fluctuation and hopefully, the economy improves and the balance sheets of Oibr may look better.

Still holding on for now till May 2015. If the price improves and I can get back 50%, I will consider to sell.

See my update on this.

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