To all:
Telesp Participaoes, the wireline baby Bras for the State of Sao Paulo, is considered one of the best assets of the original Telebras.
I would like to refer to the following:
1-a report from Credit Suisse First Boston dated 7/22/98 and 7/30/98, which explains clearly the implications of Telebras' privatization.
2- a research report from Merrill Lynch online on TSP, quoting the stock as a "best value in Latin American Telecom", price in early December 1998 was 26, target was 40.
3- earnings estimates from adr.com, a new neat website from JP Morgan, dedicated to international markets.
I am personally convinced that to own TSP, TCP and Embratel is the best way to own ex Telebras stock now. In today's conditions of Brazil's markets, these stocks are very undervalued.
I choose to own TSP because I agree with Merrill Lynch that the wireline will have a lot of potential in the future and that it may offer slightly better value than cellular. However, cellular business growth has a way to defy recessions.
TSP, being owned by Telefonica de Espana, will evetually end up in the MCI Worldcom orbit.
I bought in the last 2 days at 14.5.
Good luck,
Alfredo |
