Centrais Electricas Brasileiras (EBR) Gets Hammered
Submitted by theStockMasters... on Tue, 02/02/2010 - 23:56
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Shares of Brazilian Nuclear and Hydroelectric Power provider Centrais 
Electricas Brasileiras (EBR) got Hammered on Monday, losing -5.66 or 26%.
Something doesn't make sense here. The company recently announced news that they will be paying out $5.65 billion in overdue dividends dating back to the 1970s.
The company said it will make the payments in four annual installments in June of 2010, 2011, 2012 and 2013.
So why did shares fall 26% today?
Fellow Masters, it could be a good time to swoop in on shares of EBR, as Brazil stocks like CZZ, PRB & BRFS have been performing well lately.
“The news, besides the obvious profit for ordinary shareholders, will produce a positive effect on the risk perception of the state-controlled company as a whole,” Ricardo Correa, an analyst at Ativa in Rio de Janeiro, said of the decision to repay the dividends in a note to clients.
About 39 percent of Brazil’s power comes from the company’s 30 hydroelectric dams, 139 thermoelectric plants and two nuclear facilities, according to Eletrobras’s Web site.
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Centrais Electricas Brasileiras
Submitted by luistr on Wed, 02/03/2010 - 00:33.I am looking for news as to why this stock lost 26% of it's value over the weekend when the market was closed.
This is crazy!
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