Telebras (TBH) & Brazil Message Board

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Strategies & Market Trends : Telebras (TBH) & Brazil

TBH 0.470

-9.2%

Dec 30 3:58 PM EST

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To: DMaA who wrote (595)	12/17/1997 10:42:00 PM
From: Steve Fancy	Read Replies (4) of 22640

David, thanks for the post...will likely make a vast difference in the decisions I make tomorrow and Friday. Interesting explanation for the last couple of days. FWIW, there is another situation, referenced waaaay upthread pertaining to some shares that were issued but not delivered around 1990 or so. I believe the decisions on how these shares will be handled are to be released in January, but can't swear by it. Seems to me the deal had the potential to dilute the stock price by 4% to 7% (don't remember). I believe this dilution is built into the stock price several times over at the momemt. In regards to how they'll split the shares...my broker indicated that the Bell breakup was a mess. Investors owing 3 shares of this and 12 shares of that. As someone, I believe David pointed out, this is not real good. An especially complicated problem. Could they assign x shares of this and x shares of that etc to an ADR? This dosen't seem feasible. Will they see a rush of selling just before or just after the bidding? There must be some means of maintaining control, while giving the small guy the flexibility he needs...or maybe they don't want flexibility initially? Maybe they're locked together in a single ADR for six-12 months? Who knows what the answers are, and how they may affect the stock price. I'm reasonably confident in them though as they have held true to their word through some difficult times over the last four months or so I've followed them...or actually almost six months...since early July. My main point though is that when the information laying out the remaining details becomes available, if the small guy perceives it as a bad deal, there could be panic selling? Maybe it becomes a big boy game...and of course the currency could always be devalued. I believe a limited devaluation remains built into the stock price. I'm in and am not spooked or paranoid, and don't want to come across that way. I just don't want to mislead anyone with my half-educated (maybe less) opinions or enthusiasm. Regards sf

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