Positivo Informatica SA (POSI3) dropped to its lowest price in 30 months on speculation Taipei-based Asustek Computer Inc. (2357) plans to increase its business in Brazil, making competition tougher for the country’s biggest computer maker.
Positivo plunged 4.7 percent to 5.42 reais at 9:51 a.m. New York time, the lowest since February 2009. It earlier dropped 7.4 percent, the most intraday in seven weeks.
Asustek aims to increase to 13 percent from 1 percent its market share in Brazil over the next two years, which would make the company one of the country’s three biggest computer makers, newspaper Valor Economico reported today, citing Chief Executive Officer Jerry Shen.
“We consider the news negative for Positivo,” Banco J. Safra SA’s analysts Erick Guedes and Fernando Labes wrote in a note to clients. “It reinforces once again that competition with large global players will remain tough for the coming years.”
Positivo tumbled 42 percent this year through yesterday, the fourth-worst performance in the 73-member BM&FBovespa Small Cap (SMLLBV) Index. The gauge dropped 15 percent in the same period.
To contact the reporter on this story: Ney Hayashi in Sao Paulo at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos in New York at email@example.com