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: Steve Fancy who wrote (6348)	8/5/1998 5:12:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Bovespa index falls 4th day mirroring Dow Reuters, Wednesday, August 05, 1998 at 16:44 SAO PAULO, Aug 5 (Reuters) - Brazil's key Bovespa index slipped for a fourth day in medium trade on concern that a weak performance in U.S. equities will spur investors to dump stocks throughout the Americas, traders said. "The concern is that, after big declines in the U.S. market, a cycle of withdrawals from funds is starting," said a trader for Opportunity Asset Management. Sao Paulo's Bovespa (INDEX:$BVSP.X) index of the 58 most traded shares closed off 0.32 percent at 9,828. U.S. stocks turned positive in late trading, spurring a slight recovery in Brazil, though both markets are sharply down this month. At its lowest point, the Bovespa was down 3.06 percent. Shares worth 697.8 million reais ($599 million) traded hands. Telesp preferred (SAO:TLSP4) led a general decline in telephone stocks. Telesp closed off 1.14 percent at 260 reais. Telebras (SAO:TELB4) preferred closed little changed, slipping 0.16 percent to 127 reais, outperforming the market. "Some investors are selling Telesp and buying Telebras because it gets them access to Embratel and the cellular companies," the Opportunity trader said. Telebras share are slated to be replaced by shares representing the 12 units that were sold for $19 billion at a massive privatization auction on July 29. All three fixed-line companies, eight cellular operators and Embratel, Telebras's long-distance carrier, will trade separately, replacing Telebras shares. Prior to the sale, investors had switched to Telesp from Telebras on expectations that it would be one of the most sought-after companies at auction, traders said. Embratel and cellular operators, however, also fetched surprising premiums. Telesp Celular preferred (SAO:TSPC6) bucked the general downward trend of telecoms stocks, closing up 1.89 percent at 108.0 reais. Banco do Brasil (SAO:BBAS4) led advancing stocks, closing up 4.24 percent at 12.30 reais. "Banco do Brasil's first half results came out better than anticipated," a trader at a local brokerage said. Among blue chips, state-owned oil company Petrobras preferred (SAO:PETR4) closed off 2.95 percent at 230 reais. The big energy holding company Eletrobras (SAO:ELET6) preferred closed up 0.29 percent at 34.50 reais. Iron ore minor Cia Vale do Rio Doce (SAO:VALE5) closed up 2.63 percent at 23.40 reais. CVRD was expected to announce an increase in first half earnings after markets closed. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (6348)	8/5/1998 6:21:00 PM
From: Longterminvest	Read Replies (1) \| Respond to of 22640

Steve, I talked to traders and sales people at Latin American desks at two top brokerage houses for latin america, they think that the dedicated buyers of latin america(emerging market funds) have overbought into tbr and can't buy more, whereas the US fund managers have enough bargains back home that they don't care about TBR. The interest seem to be lacking amongst buyers. This sucker could pull back and test 102 /101 by friday before going anywhere. Hence my advice to you would be to buy farther out Calls i.e. JAN 99 & 2000 -125's that's wwhat I have been doing. but that's just an opinion. -kalpesh