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

To: Z Analyzer who wrote (12290)	1/23/1999 9:10:00 AM
From: steve kammerer	Read Replies (2) \| Respond to of 22640

"How does a currency falling from 117 to 170 equate to the 50% fall which would be required to make the stock at $65 the same as $130 previously?" Simple. 1 Real in Jul was worth $1.17 1.72 reals today are worth $1.00. That is almost a 50% decline. A baby bra having 10 reals in profit in July would have had $11.70(US) in our terms. Because of currency devaluation 10 Reals profit today would be worth approx $5.80 in US terms. The poin I was trying to make is that currently the stock is worth in reals approximately what it was worth last summer. The bad news is that a Real is only worth about $.53 to us now. P/E ratio's and everthing else are affected same way. stevek