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

To: Steve Fancy who wrote (11241)	1/6/1999 1:33:00 PM
From: Steve Fancy	Respond to of 22640

Shore would like to see some good news on this senate vote in the next 1 1/2 hours. sf

To: Steve Fancy who wrote (11241)	1/6/1999 1:53:00 PM
From: Steve Fancy	Respond to of 22640

Brazil officials deny seeking IMF target revision Reuters, Wednesday, January 06, 1999 at 12:19 BRASILIA, Jan 6 (Reuters) - Brazil's top economic officials dismissed a newspaper report that the country might seek to alter an economic target agreed with the International Monetary Fund in return for a multibillion-dollar credit rescue plan. The Jornal do Brasil newspaper said Wednesday that some government officials were considering asking the IMF for permission to revise one target - for domestic net credit supply - when fund officials assess Brazil's performance next month. Central Bank President Gustavo Franco said he had not read the report but insisted Brazil, so far, was meeting the terms of its agreement with the IMF. "It's very early for something like this. The agreement is being met perfectly," Franco said. Finance Minister Pedro Malan, asked if Brazil might be seeking a waiver, said: "Why? We are going to meet our fiscal targets." Under the terms of Brazil's agreement with the IMF, domestic net credit is defined as the country's monetary base minus net international reserves. Jornal do Brasil said higher-than-expected dollar outflows in December, when roughly $5 billion left foreign exchange markets, had left net international reserves at $36.2 billion at the end of the month. That figure did not include about $9 billion in credit from the rescue package already taken out by Brazil. The low reserve level would oblige the Central Bank to stop cutting emergency interest rates now at about 29 percent a year and actually raise them again, Jornal do Brasil said. The Brazilian government, seeking to head off a looming recession, plans to keep on cutting rates gradually as progress is made on a series of fiscal measures in Congress. Lower rates are also essential if Brazil is to reduce its debt servicing costs, the biggest factor behind its gaping budget deficit of nearly 8 percent of gross domestic product. The IMF led a $41 billion credit package offered to Brazil in November to help Latin America's biggest economy survive global financial turmoil while it implemented fiscal reform. brasilia.newsroom@reuters.com)) Copyright 1999, Reuters News Service

To: Steve Fancy who wrote (11241)	1/6/1999 1:59:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Rio's gov't threatens to call for collective moratorium São Paulo, 6 - Rio de Janeiro's recently-inaugurated state governor, Antony Garotinho, from the Worker's Democratic Party (PDT), announced today that he was preparing a meeting, scheduled for next January 18, with other important recently-elected state governors in order to push through a national movement to renegotiate states' debts accords signed with the Federal government. Garotinho said the did not discard the possibility of calling for a collective moratorium. "I believe there has been drawn a confront between the states and the federal government," Rio's governor said. Along with Garotinho is the governor of the southeastern state of Minas Gerais and former President, Itamar Franco (PMDB), who this Tuesday had announced his decision to declare not only a moratorium, see related story, but also a fierce opposition to President Fernando Henrique Cardoso's administration. "Many (governors) affirm they do not wish to confront the Federal government," Garotinho said, "but that has become inevitable". He also criticized Brazil's Finance minister, Pedro Malan, by saying that the minister "needs to watch better his declarations". Yesterday, Malan affirmed that the government would neither tolerate, nor revise debts refinancing accords signed with the states. Earlier, Finance Ministry's executive secretary, Pedro Parente, confirmed Malan's declarations when he said that the government would not admit the non-payment of state's debts. According to him, contracts previously signed by states with the government guarantee the payment. Although any dramatic decision is not expected to be announced by Garotinho before January 18, he affirmed that during the meeting he would suggest the government to open a new round of negotiation, as well as tackle every state's debt problem in its specific way. Rio de Janeiro's current debt stands at R$ 21.3bn. (By Gilse Guedes)

To: Steve Fancy who wrote (11241)	1/6/1999 3:15:00 PM
From: Safado	Read Replies (1) \| Respond to of 22640

Thank Steve. I did e-mail Georgeson. None of this makes sense. I'm embarrassed to even write about it or ask Georgeson but on the Yahoo board, another poster just showed up making claims that his buddy received a $1+ dividend on the $0.12 stub. ARRRRGGGHHHHH!!!! A must read link, if you haven't yet georgeson.com An estimate of the net worth of the stub and info on the US tax implications/basis of the split. It's a bit dated so you may have seen it already. You will need the dreaded Adobe Acrobat reader installed to access it though. My math from the figures in the document total a 353 million dollar figure in residual assets. If we don't pay the employees and just reward the shareholders, considering 196 million shares, we're looking at about $1.80 book value per share. (That would cover the alleged dividend ;-) Of course, it will be less due to the closing out costs and payroll, etc. However, as this is going on TBR's 1% holding in PT is on fire. Up over 20% this week alone. quote.yahoo.com All in all, the TBR minimum liquidation target for me is now $0.65/share. That would be about a 5 bagger at current prices if my math is correct. Hey, if I'm off by even 400%, there's at least a double bagger before me. I look forward to the day that ADR's are more straightforward and hope the SEC will impose stricter reporting rules for the sake and sanity of us lowly shareholders. BTW, I lived in Brazil about 13 years ago. It was nuts. 4 digit inflation. The supermarkets (no bar codes or scanners) had full time crews whose job it was to change the price on every item in the supermarket every day to keep up with the inflation. They've come a long way but far from stable. It's just a spark away from going boom. Tread carefully.