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Non-Tech : Unibanco -- Ignore unavailable to you. Want to Upgrade?

To: hoyasaxa who wrote (1)	11/4/1998 2:15:00 PM
From: Madharry	Read Replies (1) \| Respond to of 8

I have been a holder of Unibanco for several months out taking an initial position in the high 20s and purchasing more on the way down even as low as 8. Fundamentally I can only tell you the following: They raised $1.1Billion from their 1997 equity offering and another $500MM that they got from AIG . The market cap was less than that until recently. Unless you believe that they lost this money in the past year, you get the bank and holding company for free. By standards of revenues per market cap and book value UBB is one of the cheapest banks in the world right now. They sell for about .3xrevenue, Citi is about 1x revenue, MBK, the japanese bank , sells for 2xrevenue, many reigional banks are at 3xrevenues. In other words the stock could triple in value and still sell at a discount to most banks. They have an internet site which looks pretty good and advanced to me and they have almost 2 million customers to market services to. THey are the third largest insurance co. in Brazil and the 6th largest asset manager. They are also a large credit card issuer and own 60% of the local Blockbuster. WHO knows, if they split off their internet banking unit it would sell for more than the entire company. After all the market cap of Yahoo is $13Billion! Having said all this: The uncertainties to me are the possible bad debt losses, trading losses and we still do not know how the brazillian currency situation will play out. Good luck and do your own due dilligence.