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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (739)	1/12/1999 11:55:00 AM
From: Worswick	Read Replies (1) \| Respond to of 2794

Brazil: THB (the Brazilian telephone company ADR) at a low of 51 minus 20%-25% (for a currency devaluation)is in the mid 30"s? A buy? The trouble here Enigma is the internet frenzy is going to bode poorly for people here in the US... I see the potential of $200-$150 billion of internet money moving off to money heaven... At that point THB is a buy in the $15-$22.50 range. Brazil is the engine for South America. Did you read that post by Thomas on Korea on our Asia Foruum. Whew. More food for the Stratfor scenario. For Private Use Only ADR REPORT - Brazilian ADRs undone by politics By Daniel Bases NEW YORK, Jan 11 (Reuters) - Brazilian ADRs were sharply lower Monday on what has been described as ''pathetic'' trading volumes, amid concerns that the region could come undone because of slow progress hammering out its fiscal reform plan. ''People are just very worried that in typical Brazilian fashion, they waited and may have passed the point of no return,'' said one senior Latin American ADR trader. Brazilian telecommunication ADRs - American Depository Receipts - were being hit the hardest, pressured by a steep decline in the local stock market. The Bovespa , Brazil's benchmark stock index was down 6.44 percent at 1200 EST/1700 GMT. Telephone issue and bellwether gauge for the country and the region, Telebras (NYSE:TBH - news), was down 5 at 67-13/16. Wireless phone service provider, Tele Centro Sul Participacoes SA (NYSE:TCS - news) was down 4-1/4 at 39-1/4, while its peer, Telesp Participacoes SA (NYSE:TSP - news) was off 1-1/2 points at 19-3/16. ''You've got interest rates at unsustainable levels given inflation, and you can't lower them without causing more capital flight. I can't see a way out,'' the trader said. The ING Barings Latin American index of leading area issues was down 4.47 points, or 3.81 percent at 112.91, indicating weakness throughout the region. Mexico's main stock market index, the IPC share index was off 1.95 percent; Argentina's Merval index was down 3.07 percent; Argentina's benchmark IPSA index was off 2.53 percent. ''The volumes in the region are pretty pathetic,'' said another ADR trader in New York. Brazil's fiscal austerity reform package was undermined when the Minas Gerais state, an industrial and mining center, located in the southeast, announced a 90-day debt moratorium. Both houses of the Brazilian parliament are expected to vote Wednesday in a joint session on a presidential decree that spells out a number of higher taxes for businesses. The decree is the latest in a string of belt-tightening measures sent to the Congress by the government in a bid to keep Brazil from plunging into an Asian-style financial crisis.