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Re: None

Monday, 01/18/2016 11:33:48 AM

Monday, January 18, 2016 11:33:48 AM

Post# of 70
Expect a strong open on Tuesday if today's strength in Sao Paulo holds. SBS is up more than 5% on this MLK day. More importantly SBS is showing considerable strength on the local exchange the past week (see graph).

http://quotes2.enfoque.com.br/sabesp/flash/pt/index.asp

The ADR weakness looks to be solely a result of currency fluctuations. Given the market weakness in the S&P and the speculation that it is forecasting a recession, potential exists that the dollar may weaken in the near future. If that happens SBS should rally and avoid another visit into the 3's.

FL
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