Companhia Sanea (SBS)

[flatlander_60048]

Watch to see if the support at $3.88 holds. Based on the historical pattern, the down +50% for 2yr pattern is fairly consistent with the long term conditions. So I think we are at or very close to the bottom.

It looks like the bad news (Moody's downgrade, unfavorable comparison to S. Calif) has been priced in already and the news has little additional effect on share price. Knowing your position, I would suggest designating a certain percentage of these low cost shares (say 25 - 50%) trading shares and use them to trade around your core position. Sell them during the run ups like we had earlier this year or sell covered calls out a month or 2. Buy again on the dips. This will help mitigate some of your feelings and make it easier to support the long term core position.

Good Luck

FL