Dallas, Texas 09/19/2013 (Financialstrend) – Headquartered in Rio de Janeiro, Brazil, Oi SA (ADR) (NYSE:OIBR) is the provider of integrated telecommunication services in Brazil. It provides its services to corporate, government agencies and residential consumers. The key business segments of the company include Fixed-Line and Data Transmission Services, Mobile Services, and Other Services. The company also operates a call center and an internet portal besides providing traffic transportation services, public telephone services and fixed-line and mobile services to corporate customers. Currently the stock of the company is trading just below $2 and its 52-week price ranges between $1.42 and $4.51. Oi SA (ADR) (NYSE:OIBR)’s market capitalization is over $3 billion.
The recent news is certainly contributing to uptrend in the stock prices. Chief Executive Officer of the Oi SA (ADR) (NYSE:OIBR), Zeinal Bava recently stated that the company is expecting to expand its data center space to support its Brazil operations. He added that it is most likely that the company would be opening new data center in Portugal by next year. This expansion is to strengthen company’s position in IT services and towards becoming end-to-end Telecom Company.
Another headline triggering the stock price is release of new Wi-Fi hotspots statistics by Brazil’s telco regulator Anatel. As per the release the company boosted over 230% increase from June offering around 61.8k hotspots as of Aug. The second in lead offered just around 3.5k hotspots, almost 17.6 times lesser, during the same period.
Today the stock bounced above its 200-day moving average and near-term resistance level of $1.9 with good volume. The volume remained 9.83 million against the 30-day average volume of 3.83 million shares. The intraday range remained between $1.89 and $2.08 before closing at 2.05 (9.63%) on Wednesday, September, 18. The stock has significantly moved higher from its low of $1.42 and has been trending up since last couple of weeks. Consolidation over $1.89 with volume near around 4.3 million shares could take out Oi SA (ADR) (NYSE:OIBR) to its next major resistance levels around $2.25 to $2.29 and high-volume trading above these levels could win a rally to $2.50 mark.