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

To: jayray who wrote (9644)	11/12/1998 3:50:00 PM
From: steve kammerer	Read Replies (2) \| Respond to of 22640

JayRay, Today,after a big argument with Fidelity, I was finally told that the JP Morgan RTB conversion was not available to Fidelity customers. I called twice this morning. The first time I called I was told that the deadline was yesterday, meaning Wednesday. I asked Fidelity to listen to their tapes since they aree recording conversations "for my protection" and explain why they felt it was necessary to lie. Either Fidelity customers can never partake in the RTB conversion or it was available yesterday. Felt like I was listening to Clinton! I finally sold some and bought TBH. I'm also moving Fidelity account to one I have at DLJ Direct. stevek

To: jayray who wrote (9644)	11/12/1998 6:32:00 PM
From: Steve Fancy	Respond to of 22640

Hey Jay, I think the decision needs to be based on investment strategy and number of shares you hold and whether or not you use a discount broker. See my examples from the following link... techstocks.com ...as you can see, for folks holding 100, 200 shares it may not be very cost effective to take the babies. I guess the question is where is it cost effective for folks who plan on holding for 5-10 years. Personally, I'd prefer to take the babies. For folks with an adequate number of shares for their situation, and feel at some point they're likely to want the babies, I'd stay away from TBH/RTB. For folks who want to stick with the basket, everything I know suggests they would want RTB in that if I understand that is a permanent security whereas it has been suggested that TBH goes away at some point. Regarding the RTB conversion, maybe you can help me in that I haven't followed these as closely as I should have. RTB can be bought outright, correct? Assuming so, what is the advantage to converting to RTB vs just selling TBR tomorrow and buying them? I assume commissions? Comments welcome from everyone on both subjects. sf

To: jayray who wrote (9644)	11/12/1998 8:26:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Jay, a corrected version of my share allocation. I had listed 100 shares for TRO and it should be 1/3 of that or 33 shares. Unclear why they left TRO so cheap compared to the rest. Again, I may have matched the names up wrong, but the cummulative end result would be the same anyway. Below is the corrected version. sf =================================================================== I'll try and make this explanation simple. It is important that you understand that currently both in the US and Brazil TBR trades in units of 1000 shares. Each TBR ADR you own actually represents 1000 shares. Now, as you can see from the table below, they have upped the number of shares each new ADR will represent, and lowered the number of new ADR's you will receive on most of the new companies. Sooo, for a 100 TBR ADR's you receive the equivalent of 100 shares of each of the new companies. The following table shows you the new company names, number of ADR's to be received per 300 shares, number of shares the new ADR's represent and the new NYSE symbol. I suspect they did this so that share prices would meet NYSE requirements. # of # of new ADR's shares per 300 TBR in new ADR Symbol ==================================== =========== ========== ======== Tele Norte Leste Participacoes 300 1000 TNE Tele Centro Sul Participacoes 60 5000 TCS Telesp Participacoes 300 1000 TSP Embratel Participacoes 300 1000 EMT Telesp Celular Participacoes 120 2500 TCP Telemig Celular Participacoes 15 20,000 TMB Tele Celular Sul Participacoes 30 10,000 TSU Tele Centro Oeste Celular Participac 100 3000 TRO Tele Norte Celular Participacoes 6 50,000 TCN Tele Nordeste Celular Participacoes 15 20,000 TND Tele Sudeste Celular Participacoes 60 5000 TSD Tele Leste Celular Participacoes 6 50,000 TBE So for 100 TBR shares you should receive... Apprx share value New per Wed Brazil ADR's close (US$) Value ============================== ====== ============= ======= Tele Norte Leste Participacoes 100 14.86 $1486.00 Tele Centro Sul Participacoes 20 45.35 $ 907.00 Telesp Participacoes 100 26.45 $2645.00 Embratel Participacoes 100 15.03 $1503.00 Telesp Celular Participacoes 40 21.20 $ 848.00 Telemig Celular Participacoes 5 24.00 $ 120.00 Tele Celular Sul Participacoes 10 13.80 $ 138.00 Tele Centro Oeste Celular Participac 33 2.58 $ 85.14 Tele Norte Celular Participacoes 2 14.50 $ 29.00 Tele Nordeste Celular Participacoes 5 14.00 $ 70.00 Tele Sudeste Celular Participacoes 20 21.40 $ 428.00 Tele Leste Celular Participacoes 2 26.00 $ 52.00 ====== ========= $8311.14 Stock closed at US $83.11 that day, so you can see through rounding etc,my numbers are close. TBR is down a tad since Wednesday also. This is more of an example of what to expect.