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

To: Steve Fancy who wrote (1106)	3/3/1998 1:59:00 AM
From: Michael Burry	Respond to of 22640

Telebras was a no-brainer buy at 90-100, but it is a no-brainer hold at these levels. This is a stock that you can hold for another year, get to $160, and not worry about a) income taxes or b) pouring the money in another investment with more risk. The way the stock and the Brazil market has reacted to such bad news as the debt situation is very positive. They are getting the currency in order, and we should focus instead on the true biggest risk to Brazilian equities - the scary-high US stock market. But technically, the US market is making a very strong bullish move, with enough doubters to keep it going. I keep holding, with a cost-basis in the 70's by now, and I'm shooting for the capital gain. Personally, I see the company worth $157 in 1998 based on valuation at today's exchange rate. I expect momentum players to bid past that, and I would regard any dip as only an opportunity to overweight my position, rather than regarding every surge as a chance to sell. Good investing, Mike