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

To: Steve Fancy who wrote (7673)	9/9/1998 1:40:00 PM
From: djane	Respond to of 22640

Summary of CNBC Faber report entitled "TBR's Sad Saga" at 1:10 p.m. EST (saw the segment after having CNBC on mute while hard at work) -Compared TBR recent slide to AT&T's 50% slide after the RBOC spinoffs -Analysts say TBR "is the cheapest telecom stock they've ever seen," and getting cheaper (giggles heard in the CNBC studio) -Merrill Lynch valuation 2.7x '98 EBITDA 20% EBITDA expected growth in 1999 5.5 '98 PE and under 5 PE for '99 ADR at $25 below book value -Morgan Stanley (advisor to govt for privatization) told clients yesterday about 9/15 listing on Brazilian exchange and late 9/98 or early 10/98 listings of ADRs on NYSE -Late 7/98 auction raised $19B from companies like MCI, Spain's Telefonica and Telecom Italia. Paid enormous premium over minimum price set by govt. Staggering premium over current ADR price. -Based on bids and auction, TBR shares are worth $295/share or 5x the current stock price. [Faber looked stunned...] -Faber said companies have said they will stick by their bids. MCI spokesman said they were in Brazil for the long-term and expected "enormous growth."** -11 phone lines and 3 mobiles for every 100 people -Market is concerned about devaluation. If so, it wouldn't hurt line growth, but it would hurt usage and the stock price Okay, back to our regularly scheduled global capital panic centered on Latin America. Next week, Antarctica's devaluation looms as a catastrophe beyond words (well, not beyond advertising revenue)...