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

To: steve kammerer who wrote (9646)	11/12/1998 4:06:00 PM
From: posjim	Respond to of 22640

ok, some lurkers pushed it up at the close..great! 79 7/8.. If the radio reports in Brazil are correct, package size sounds pretty good. thanks for all the posts

To: steve kammerer who wrote (9646)	11/12/1998 6:15:00 PM
From: Steve Fancy	Read Replies (9) \| Respond to of 22640

Steve, you must have changed your post, cause I thought I read something totally different from you earlier. I thought I had seen you commenting on dilution due to reduced number of shares in some cases. Here's something I put together for a family member who holds 100 shares. Due to rounding it adds up a little more than Wednesday's close, but should be close. I may have confused the prices on TRO and something else, but it would work out the same anyway. 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 100 2.58 $ 258.00 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 ====== ========= $8484.00 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. sf