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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (5554)	12/24/1998 3:48:00 PM
From: Madharry	Read Replies (1) \| Respond to of 78715

Thanks guys .Re: UBB: Caveats: I have no current financials on UBB so I do not know if they have suffered trading losses or huge loan losses recently. I am making no predictions on the economic well-being of Brazil. I do not follow any other foreign banks as UBB is so cheap if I decide I want more of a bank I will buy more UBB. UBB sells at about .5 of my estimate of its current book value. and .3-.4 of revenues. Most US banks sell at 2-4 times book and 1-3 times revenues. I expect long term growth at UBB to be much better than at most US banks. Outside of its profits which I believe are about $4 a share it has raised $1.6 billion in the past three years- $1.1 billion from stock sales and $500MM from the sale of a 50% interest in an insurance subsidiary to AIG ( not a bad partner). This may be more than the current market cap of the company. It also has around 2 million retail accounts and a growing web-site which I believe will be a huge revenue producer and cost containment instrument for all banks if used properly. This is the story in a nutshell. Brazil will continue to have problems but I do not see a collapse in the cards and I see UBB as being a great long term investment (over twenty years) and I would use drops to buy more if I have the funds and it is a reasonable part of my portfolio. First I need to buy some USU <g>!