Dallas, Texas 01/06/2014 (FINANCIALSTRENDS) – Oi SA (ADR) (NYSE:OIBR) is a Brazil based telephone services provider which has a market cap of $2.87 billion. It provides tele-communication services like “Fixed-line telephony/data segment, the Mobile telephony segment, and the other segments”. The other segments include services like third party tele-marketing and television services via the direct to home technology. It had tapped the North American financial market by issuing American depository receipts and has provided its U.S investors a 21.5 percent return over the past six months period.
Stock Market Rally
Oi SA (ADR) (NYSE:OIBR) stock during trading on January 3, pleasantly surprised its American investors by posting a 16.67 percent increase in its market value during the day’s trading. When the trading ended for the day, the stock price had settled at $1.75 per share and was 32.3 percent above its 52 week low price point. Investors flocked to the stock on the day with a voracious appetite, resulting in its daily trading volume registering a five times increase over its daily average.
Continued Weakness In Its Operations
The Brazilian telecom major which had managed to post sales of $14 billion in the past one year sprang the surprise on the investors at the markets since its operations have been under close scrutiny in its parent market for the past few quarters. Thanks to the chronic weakness displayed in its operations which includes sliding net income, bloating debt and continued dip in customer base.
Oi SA (ADR) (NYSE:OIBR) has been able to sustain the interest of investors in the stock by paying out divided of $0.24 per share which translates into a dividend yield of 13.71 percent over the trailing 12 months. Readers should note that this telecommunications stock has been underperforming in its parent market and hence rating agencies have remained sceptical about the stock in the U.S market.
