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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: md1derful who wrote (22603)	8/8/2002 9:50:03 AM
From: Art Baeckel	Respond to of 22640

This helped my TNE longggggg! Nice POP this morning $9.18. DJ Bear Stearns Upgrades Brazilian Equities On IMF Aid Deal 08/08/2002 Dow Jones News Services (Copyright © 2002 Dow Jones & Company, Inc.) (MORE) DOW JONES NEWS 08-08-02 08:22 AM DJ Bear Stearns/Brazilian Equities -2: Aid Eases Skepticism NEW YORK (Dow Jones)--Bear Stearns upgraded its recommendation on Brazilian stocks Thursday following news that the country had come to terms with the International Monetary Fund on a $30 billion aid accord. The bank said it upgraded its core medium-term recommendation to "market weight with a neutral, albeit selective tilt" from "no more than market weight with a defensive tilt." "For now, we are ending our medium-term skepticism regarding Brazil's equities, a view we have held through 2002," Bear Stearns analyst Thierry Wizman said in a research note. Wizman noted that the aid package - which was announced late Wednesday and far exceeded market expectations - should improve the political dynamic, limit talk of a possible debt default and boost short-term private financing. However, he added, "it does not directly imply a more accommodative monetary policy or an assertion of growth-oriented policies - measures we feel are important if trends in domestic operating performance are to match the standards set by Mexico." According to the report, Brazilian stocks could rally at Mexico's expense as investors sell the latter to fund the former. Nonetheless, Wizman said, Mexican equities also remain inexpensive and could significantly rally if U.S. markets pick up. Bear Stearns recommends that investors who have adopted a defensive stance of late in Brazil consider rotating into a more aggressive portfolio, focussing on stocks that have strong fundamentals, that will benefit from a stronger local currency and that are linked to domestic demand. Recommended stocks include oil company Petroleo Brasileiro SA (PBR), power utility Eletropaulo Metropolitana Eletricidade de Sao Paulo (E.EPM), steel group Companhia Siderurgica Nacional SA (SID), financial services group Banco Bradesco (BBD) and telecommunications concern Tele Norte Leste Participacoes (TNE). -By Stephen Wisnefski, Dow Jones Newswires; (201) 938-5692; stephen.wisnefski@dowjones.com (END) DOW JONES NEWS 08-08-02 09:05 AM ART