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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (18642)	2/18/2004 10:19:30 PM
From: Spekulatius	Read Replies (2) of 78516

Portfolio update - TSU Brazilian Wireless company under the TIM umbrella covering the region is the prosperous south. Strong balance sheet - 340M Real in net cash (1 Real-.34US$) FCF- 208M$ Real in 2003 P/E 11.4 for 2003 (Earnings/ADR 3.4 Real) Revenue growth 32% YoY Earnings growth 78% YoY The free cash flow numbers are very impressive given the fact that TSU invests quite heavily in GSM upgrades - they reached about 50% population coverage for GSM so far: Negatives: -shrinking market share (new market entrants) -volatile Brazilian market -potantial currency issues (Real devaluation) - increased churn See links below for info about Q4 2003: sec.gov businesstoinvestor.com I found the yahoo numbers to be somewhat off. TSU seems to me very profitable wireless company with a very strong balance sheet. Their FCF is very strong despite the outlays for the GSM upgrade and should be even stronger once the major investments are done. I believe that TIM sooner or later will take over the company, they control the majority of voting shares but only 23% of the overall equity. Another Brazilian wireless company I like valuation wise is TND but so far i only have a position in TSU.

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