Why Brazilian Stock Oi S.A. Plunged More Than 25% Today
Shareholders in Brazilian telecom Oi S.A. (NYSE: OIBR.C) are having a bad month. Reporting Q2 earnings last week, Oi fessed up to a $385 million loss for the quarter. No sooner had it done so than rumors began circulating that the Brazilian government might decide to "intervene" to save the company (i.e. take it over), and ensure continuity of telecommunications services for Oi customers.
Oi stock closed out the week down 34% from the price at which it began. Today, it shed another 27.1% as of 2:30 p.m. EDT.
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Source Fool.com
