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 (6948)	8/21/1998 10:23:00 AM
From: MGV	Read Replies (1) \| Respond to of 22640

Officially in uncharted territory...if no bounce off of these levels today or Monday, could be going doooown. This isn't a stock, its a white whale! It maybe (past) time for gallows humor. Remeber that advertisement where the little old lady falls down the stairs and says: Help me! I've fallen and I can't get up! I can empathize. For me, its Help me, Its falling and I can't stop buying!

To: Steve Fancy who wrote (6948)	8/21/1998 11:36:00 AM
From: Steve Fancy	Respond to of 22640

Brazil shrs seen drifting lower on global mkt woes Reuters, Friday, August 21, 1998 at 09:23 SAO PAULO, Aug 21 (Reuters) - Brazilian shares are seen drifting lower on Friday with a gloomy outlook for global markets pounding on the blue-chip Bovespa (INDEX:$BVSP.X) index, brokers said. The Bovespa posted the biggest decline in four months plunging 6.43 percent to 7,991 points on Thursday. "Prices may firm a bit at the open as they ended at very low levels Thursday, but the problems that haunted us yesterday are still ongoing," one Corretora Doria & Atherino broker said. Brazilian equities have been battered by emerging market woes fueled by speculation of a currency devaluation in Venezuela. Local shares suffered another blow late on Thursday on general unease following U.S. missile attacks in Afghanistan and Sudan, brokers said. "The mood in Sao Paulo may be defined by performance on Wall Street today if it gets nasty there," the broker said. The market's benchmark Telebras preferred (SAO:TELB4), which plunged 7.2 percent on Thursday to 100.50 reais, was seen testing its next technical support at around 95 reais. Telebras' ADR (NYSE:TBR) was trading down at 81-1/2 in its pre-opening session compared to its Thursday's close of 86-2/16. In Brazil's currency market, the real opened down 0.04 percent at 1.1745 to the dollar. Forex dealers said it was still difficult to gauge overall sentiment, although nervousness from overseas persisted. In the debt market, Brazil's dollar-denominated C-bonds were down 2.375 points at 57.125 at 0950 local/1250 gmt. The papers are widely considered an emerging market benchmark due to its liquidity. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (6948)	8/21/1998 11:37:00 AM
From: Steve Fancy	Respond to of 22640

Brazil shrs start sharply off on emerging mkt woes Reuters, Friday, August 21, 1998 at 09:48 SAO PAULO, Aug 21 (Reuters) - Brazilian stocks kicked off Friday sharply lower with the bellwether Bovespa index (INDEX:$BVSP.X) plunging 3.05 percent within ten minutes of trade due to persisting worries in emerging market economies, brokers said. The Bovespa was trading at 7,748 points at 1009 local/1309 gmt. The most liquid blue-chip stock, Telebras preferred (SAO:TELB4), sank 4.48 percent to 96 reais, barely above its next technical support at 95 reais, brokers said. "The market is very nervous mirroring uncertainties in overseas markets," said one trader. The Bovespa's early losses came after the index posted a 6.43 percent plunge on Thursday -- its biggest decline in four months. Brokers could not tell where the next floor would be. The index was already down 25.3 percent so far in August and 21.6 percent so far this year by Thursday's close. Among a batch of negative external news pounding on the Bovespa were fears of a currency devaluation in Venezuela and the U.S. missile attacks on Afghanistan and Sudan, brokers said. Local investors were bracing for Wall Street to start trading. "The mood in Sao Paulo may be defined by Wall Street today if it gets nasty there," said one broker. Key blue chips sunk to new lows for the year. Petrobras preferred (SAO:PETR4) was down 5.59 percent at 169 reais, while Eletrobras preferred B (SAO:ELET6) was down 3.32 percent at 26.20 reais. Vale do Rio Doce preferred (SAO:VALE5) was down 2.88 percent at 17.20 reais in early trade. In the currency market, the real was down 0.09 percent at 1.1750 to the dollar at 1035 local/1335 gmt. The decline was mainly due to the Central Bank lowering its dollar-real mini-band rate in a routine auction. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (6948)	8/21/1998 11:39:00 AM
From: Steve Fancy	Respond to of 22640

TABLE-Brazil's Cemig (SAO:CMIG4) H1 net jumps 97 pct Reuters, Friday, August 21, 1998 at 10:15 RIO DE JANEIRO, Aug 21 (Reuters) - Brazil's Minas Gerais state electric energy company Cia Energetica de Minas Gerais-Cemig posted the following first half 1998 financial results Friday: H1 1998 H1 1997 Net profit 175 mln 89 mln Net revs 1.15 bln 1.03 bln NOTE - All figures in Brazilian reais. Cemig said in a statement posted on the Internet that its market grew 4.5 percent at the same time that the company was able to cut operating costs by 42.8 million reais mainly by trimming personnel costs by 37.9 million reais through a program of layoffs with compensation. tracey.ober@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (6948)	8/21/1998 11:41:00 AM
From: Steve Fancy	Respond to of 22640

Brazil stocks deepens losses after Wall St opens Reuters, Friday, August 21, 1998 at 10:52 SAO PAULO, Aug 21 (Reuters) - Brazilian stocks continued to nose-dive after the Dow Jones headed south in early morning trade amid more headaches in emerging market economies, brokers said. The blue-chip Bovespa index (INDEX:$BVSP.X) fell 5.15 percent to 7,580 points at 1050 local/1350 gmt, tracking big declines posted on Wall Street. Including Thursday's plunge, the Bovespa was down nearly 12 percent in two days. "There is no direct relationship between Brazil and what goes on in Russia or Venezuela, but foreigners are selling Brazilian assets to get the cash they need to pay off their losses elsewhere," said one trader at Indusval brokerage. Persisting turmoil in Russia and speculation of a currency devaluation in Venezuela were primary factors pounding the Bovespa. Brokers said a slumping Dow Jones made matters worse. Sao Paulo's most liquid issue Telebras preferred (SAO:TELB4) lost 5.67 percent to 94.80 reais. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (6948)	8/21/1998 11:47:00 AM
From: Steve Fancy	Respond to of 22640

This is from Mike...hope he doesn't mind my posting it, but he never has in the past. sf =========================== Where do we go from here is a very good question. I did not expect TBR to reach present levels at all. Investors seem to have lost interest in the stock. Daily volume has been around 1.5 bil 50% of what it used to trade. I thought that TBR would be at a low of R$115 at our option expire Aug. 17th and R$118 today. BUT NOT R$100! My analyst mentions today that TBR should go to R$85(US$72). If the flight for quality continues and the emerging market funds continue staying out of Brazil the we could go to a level only seen in April 97 R$70(US$60). I hope we stop where we are and accumulate. Hope to see a turn around by late next week or latest after labor day, and go into a Sept. rally. Someone on the SI-TBR thread did mentioned that after the privatization of TBR we could see the stock go to US$85, I think it was Jeremy, R. Keeling or md1erful. Now that is what I call a prediction! By the way, bought call options on TBR 140's on Wed. at R$1.10, and think I will buy more at R$0,45 or less today sometime or Monday, so I am STILL OPTIMISTIC ! All news locally very positive, we are feeling effects of Asia, Russia and now Venezuela & Mexico. I bought into Centocor(cnto), Idec Pharm(idph) and Masco(mas) at end of July and am still in good shape. Projections show 100% upside from current prices. ML, SB and JPM all give them Buy/Buy. Do you know them and/or any ideas. Good Trading and all the best

To: Steve Fancy who wrote (6948)	8/21/1998 11:48:00 AM
From: Steve Fancy	Respond to of 22640

CNBC mentioned a couple minutes ago that the Bovespa circuit breakers kicked in at a 10% drop. Not sure how their circuit breakers work. sf