Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Doug Chin who wrote (1240)	3/18/1998 9:44:00 PM
From: Tony van Werkhooven	Read Replies (1) \| Respond to of 22640

Doug, my first reaction to your post was that your PE assumption was way to high. Now consider the following: SYMBOL P/E TDP 13.2 TL 19.2 TEO 24.3 TAR 19.9 TMX 16.4 Now, I would say that your assumption of 20 is somewhat to high. Other positives of this company after privatization are: 1. acceleration of installed fixed line base 2. potential for cost reductions 3. more focussed companies- easier to analyze and predict results If we use TMX as a proxie, one could come up with 250 as a reasonable value. This would not be giving credit to potential earning acceleration after privatization. Doug, this is an interesting exercise- how do we refine this? In any event, this confirms that we have a long upward ride ahead of us. Tony

To: Doug Chin who wrote (1240)	3/18/1998 10:31:00 PM
From: Rohit Nanavati	Respond to of 22640

Hello, I wouldn't go beyond $200 target price. Rohit

To: Doug Chin who wrote (1240)	3/19/1998 2:10:00 PM
From: Steve Fancy	Read Replies (4) \| Respond to of 22640

Hi Doug...great analysis. I haven't known how to value TBR and have been using analyst price targets as a vague basis for my decisions. I am more of an momentum investor and became interested in TBR based on the volatility. In this case, I was interested enough that I also purchased the stock. What time frame are you trying to project a target for? This year? Immediately before or after privatization? Really appreciate the post. You are helping to fill the largest void on this thread, and adding a lot of value. I feel I am well versed on recent history of TBR (nine months) and the status of the privatizaton, but have been searching for help on valuing this monster. sf