Why Copel Stock Is Soaring Today
Shares of Companhia Paranaense de Energia (NYSE: ELP), also known as Copel, are rocketing 21.6% higher as of 11:55 a.m. after it was revealed the Brazilian state of Parana wants to privatize the energy company.
Reuters reports the newly re-elected governor of Parana, Ratinho Junior, sent the state-run utility a letter expressing his wishes to privatize it through a secondary follow-on share offering in a bid to raise money for the state.
There's an investment saying that goes, "What the king sells, I buy" -- that is, privatization moves are often opportune times for an investment. No doubt the market is seeing the privatization of Copel as just such a good time to get in.
Source Fool.com
