Dow Jones Falls Triple Digits: JPMorgan and Brasil Telecom Lose Big (JPM, BTM)

Today was all about JPMorgan Chase (NYSE:JPM) disappointing the Street as the Dow Jones Ind. fell 100 points, one of today's biggest losers was Brasil Telecom SA (ADR) (NYSE:BTM), its shares fell 10.9% to end the day at $25.42.

The new year has not been a great start for Brasil Telecom (BTM), shares are already down 12% in 2010.  Since November Brazil Telecom shares have felt a correction falling from the the low $30 range to the mid $25 range.  BTM is now trading very close to its 200 day moving average of $25.67 per share.  However today's fall of Brasil Telecom can't be blamed on JPMorgan's (JPM) broader impact, rather there is trouble from a even larger source: SAO PAULO, Jan 15 (Reuters) - Shares of Brasil Telecom posted on Friday their biggest tumble in 16 months after parent company Oi suspended stock purchases from minority investors in the wake of mounting lawsuit losses.

Oi, the largest Brazilian fixed-line telephone company, halted late on Thursday a plan to buy Brasil Telecom shares. Independent auditors found that losses from lawsuits could be twice the amount the company had provisioned for up until now, Oi said in a regulatory statement.

Oi, formerly known as Telemar, and Brasil Telecom agreed to review terms of the share tender after provisions are recorded in the latter's fourth-quarter earnings statements, the filing said. Oi also pledged in the filing to figure out a new exchange ratio for Brasil Telecom shares and present it to minority shareholders at a meeting.

"This is clearly negative for minorities at Brasil Telecom and neutral for Telemar," said Ativa brokerage analyst Luciana Leocadio. "With provisions way up, results for both companies in the fourth quarter will suffer."

Keep your eye on BTM, but wait for the dust to settle, this is a stock to add to your watch list but not until the politics play out.