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: md1derful who wrote (6904)	8/20/1998 3:16:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Doc, nope, nervous as all other longs at the moment. IMO, we're basically in uncharted territory with TBR based on the difference in scenarios now and last year. Not sure what to think at the moment, but doesn't look like the selling is over. sf

To: md1derful who wrote (6904)	8/20/1998 3:29:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Trying to get a handle on how much worse things could get. TBR seems to have already sold off beyond all reason, yet selling doesn't appear to be over. Seems to me that a real devaluation of waaaaay beyond 10-20% is more than built in, yet she keeps going down. The selling is irrational IMO, how much more irrational can it get. My inclination is not to run scared, but this is a toughie. sf

To: md1derful who wrote (6904)	8/20/1998 3:35:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Seems the big guy shorts are succeeding in creating an unbelievable sense of panic. Wonder if any portion of this is related to options expiration tomorrow. Think of all the long calls they're gonna wipe out. Bovespa approximately 500 points from a 52-week low. sf

To: md1derful who wrote (6904)	8/20/1998 3:41:00 PM
From: Steve Fancy	Read Replies (9) \| Respond to of 22640

Brazil forex plan safe despite mkt turmoil-Cenbank Reuters, Thursday, August 20, 1998 at 15:13 RIO DE JANEIRO, Aug 20 (Reuters) - Brazil's foreign exchange policy will not have to be altered because of fallout from Russia's financial woes and rumors of a Venezuelan devaluation, Central Bank Director Demosthenes Pinho Neto said Thursday. "We are not seeing anything that is going to take us off course," Pinho Neto, the bank's international affairs director, told reporters. Brazil's ability to maintain its strong forex policy often comes under close scrutiny in times of global market turmoil. But Pinho Neto noted that Brazil was in a much stronger position than Venezuela to defend its currency because of its whopping $70 billion in hard currency reserves. Venezuela, which denied market rumors Thursday that it was mulling devaluation, has about $15 billion in reserves. Brazil's high budget deficit of about 7.0 percent of gross domestic product keeps interest rates high and makes it more costly for the government to support a strong currency. But Pinho Neto said Brazil hoped to cut the budget shortfall to 3.5 percent of GDP over the next two to three years. Copyright 1998, Reuters News Service