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

To: Steve Fancy who wrote (596)	12/18/1997 1:37:00 AM
From: Uncle Mikey	Respond to of 22640

Steve - the article in the WSJ is not exactly as it was interpreted here. The selling that took place in Brazil was not in TBR but in small local companies. When someone signed up for phone service is such and such a place they were issued X number of shares in THAT company. When the opportunity came to sell those shares people rushed out and sold en mass. That caused the stocks of these small companies to drop 20% or more in the past couple of days. I suppose you could say that TBR was impacted in that it had to compete with all those telco shares turned loose in the market, but the article did not say that, it refered only to the stocks of these small companies. Mike

To: Steve Fancy who wrote (596)	12/18/1997 10:10:00 AM
From: Madharry	Respond to of 22640

Despite the incovenience of having odd lot shares in several companies, think of the returns the shareholders of att post split received on their investment. i think that will make up for the inconvenience. Evrything I've read about Brazil indicates a lot of volatility but excellent long term returns so if you are not on margin have patience and be rewarded.

To: Steve Fancy who wrote (596)	12/18/1997 6:02:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shrs end off 3.76 pct on Dow, S. Korea woes Thursday December 18, 4:20 pm Eastern Time SAO PAULO, Dec 18 (Reuters) - After rising for three seesions in a row, Brazilian shares ended sharply lower Thursday as Wall Street's heavy losses and worries over South Korea triggered the selling late in the day, traders said. The Bovespa index (.BVSP) of the 51 most traded stocks closed off 3.76 percent, down 371 points, at 9,483 points. Market turnover shrank to 617.5 million reais ($556 million). ''It was Wall Street combined with fresh concerns coming from South Korea,'' said a senior trader. Analysts said Asia sent fresh jitters through international markets after South Korea's elections results showed the opposition leader Kim Dae Jung winning. Shares opened slightly lower, with players taking profits after three days of rises, but market weakness intensified as Wall Street dived amid worries over South Korea. Traders said the bolsa could continue cutting into gains Friday, particularly if Asian worries deepened. -- POSSIBLE LOST DATA -- \000 Private miner Cia Vale do Rio Doce (CVRD) (VAL_p.SA) preferred fell 3.9 percent to 19.70 reais. After Thursday's weaker close, the key Bovespa index was up 34.7 percent on the year, compared with an over 90 percent gain seen before crashes in Asia sparked selloffs in stock exchanges worldwide, including Brazil.

To: Steve Fancy who wrote (596)	12/18/1997 6:06:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

RESEARCH ALERT-Three Brazil telecoms still buys Thursday December 18, 4:39 pm Eastern Time SAO PAULO, Dec 18 (Reuters) - HSBC James Capel said Thursday it maintained buy ratings on Brazilian telecoms Telesp (TLS_p.SA), Telerj (TER_p.SA) and Telemig (TMG_pb.SA), units of federal holding Telebras (NYSE:TBR - news; TEL_p.SA). HSBC James Capel analyst Paul Aran said ratings were kept despite stock dilution this year and next due to the issue of new shares stemming from capital increases associated with the end of Telebras' so-called ''autofinancing'' line purchase program. -- said the brokerage has ''adjusted (its) price targets and earnings estimates to reflect this new dilution.'' -- said he cut his mid-year price target for Telerj, which serves Rio de Janeiro state, to $191 from $210 to reflect a 16.2 percent rise in total shares this year and a further six percent dilution in 1998. -- said preferred shares of Telesp, which serves Sao Paulo state, suffered a 17 percent dilution, while common shares were diluted by eight percent in 1997. -- said total Telesp shares should be further diluted by about three percent this year and that, while his $385 price target was left unchanged, earnings estimates for the firm would be ''fine tuned upwards.'' -- said Telemig shares were diluted 0.2 percent in 1997 and would suffer a one percent dilution in 1998 as a result of the share issue, but his price target remained unchanged. Telesp preferred was off 2.61 percent at 279.50 reais, Telemig's preferred B dropped 3.67 percent to 118 reais and Telerj preferred was up 1.04 percent at 97.50 reais. Common shares of Telesp plunged 6.25 percent to 225.01 reais, Telemig common was off 2.86 percent to 105 reais and Telerj common was off 1.71 percent at 86 reais.