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

To: James Clarke who wrote (5564)	12/26/1998 2:12:00 AM
From: Madharry	Read Replies (1) \| Respond to of 78752

Good questions. Not too big to fail IMHO anyway. It is the thrid largest bank or bank holding company in brazil. You are right about the leverage and that is one of the caveats-lack of current information about delinquencies and problem loans- then again this is par for the course when dealing with most banks unless you have inside information. The other caveat is potential trading losses- here again I know next to nothing about the banks trading policy. I can only say that the impression I get from reading the annual report is that they are conservative from a financial management point of view and expansionistic from a business and strategic point of view but they purchase assets at a reasonable cost-so from what I can see I like their management style. The stock may be depressed because Brazil is going into at least a recession and there may be concern about growing loan problems, as well as the devaluation risk so short term be prepared for volatility, but I believe this bank will thrive long term, if it is not acquired first. Actually it is an ADR symbol UBB and the ADR represent an interest in the bank and an interest in the bank holding company. Hope this helps. If you are considering a purchase I would suggest you average in because of the volatility. I own it at 28,20 and 8!