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

To: Steve Fancy who wrote (8269)	9/18/1998 10:49:00 AM
From: Steve Fancy	Respond to of 22640

SMARTMONEY ONLINE: Buy These Telecom Stocks On The Dips Dow Jones Newswires SmartMoney Interactive By Kevin Delaney NEW YORK (Dow Jones)--In our October cover story "The Seven Stocks to Buy Now," we recommended two telecom stocks that have been hit hard by the market's recent turmoil. L.M. Ericsson Telephone Co. (ERICY) is off 13.7% and Bell Canada International Inc. (BCICF) has lost 7.9% since the beginning of this month. In our view, the drop in their prices only makes them more attractive to investors. On Thursday, Ericsson dropped 7.2%, the victim of a broad assault on the telecom sector th at came after French equipment maker Alcatel (ALA) announced that its operating profits dropped 15% on a sales decline of 29% during the first half of the year. But behind Alcatel's horrific news lay some positive signs for Ericsson. Despite blaming the dropoff in part on the Asian economic crisis, Alcatel executives affirmed during a conference call Thursday that China - Ericsson's single largest market - was still strong. They also speculated region where Ericsson is a dominant player - should pick up next month, as the newly privatized units of Telebras (TBR) resume their equipment spending. While Ericsson has already warned analysts about its weaker than expected third quarter profits, the company should hit its stride again in the fourth quarter, according to the Credit Suisse First Boston Wireless Group, supported by strong demand for its new AXE switch. Ericsson's forward P/E now stands below 16.2, making it even more attractive to investors.