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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (29200)	5/3/2005 8:36:54 AM
From: Haim R. Branisteanu	Respond to of 116555

Ref: Closing Braskem Position - Gain of 40% in four months (This trade was posted on this tread Message 20933559 On December 28, 2004 I suggested investment to clients of a Bank FX Trading Room on a play of petrochemical demands and anticipated fall in interest rates in Brazil. Company: Braskem is the largest petrochemical company in Latin America. Figures among the five biggest Brazilian private companies with over R$ 11 billion earnings a year. Scenario 2 - Chosen Sell BAK stock short on the NYSE (Braskem) (long USD , Dividend est.1.5% ) Buy Braskem debenture at Variable rate Debenture Dec 07 or Jun 09 (long Real @18%) Sell Short Term (two months) BRL/ EUR Put @ 3.66 (long Real v. EUR) for4.7% Closing Position of Braskem from December 28, 2004 Summary of P&L Short BAK @ 50 cover @ 39 - Gain of 22% Currencies Gain BRL/USD - Gain of 7.4% Gain on BRL/EUR Put Option for 4.7% Option expired worthless - Gain of 4.7% Interest income for 4 months at 18% Gain 6% Total gain on an un-leveraged position 40% in four months