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

To: Steve Fancy who wrote (15428)	5/20/1999 4:34:00 PM
From: wl9839	Read Replies (1) \| Respond to of 22640

Steve, From what I can see on the net, Argentine fears have really spooked the LATAM markets. Supposedly the BC was unable to sell 2.5 billion in short term notes because of the uncertainty of interest rates in Argentina. This is the only thing I see that can explain why the market went sideways when the last two times there has been an interest rate decrease, there were impressive gains. There also seems to be a concerted push to put TBH below the 95 strike price (not being content with shredding the 100 level). I guess it is a little of payback time as I think the Bovespa had the same effect on the Merval when the Bovespa tanked the last time. Oh well... Any thoughts on which stocks may be good defensive plays. My Brazilian contact says Bear Stearns is recommending Klabin, a Brazilian paper and pulp company as being both a good export play, but also a paper play (see what happened to US paper companies today). It is a thinly traded ADR (IKLBY on the BB) but at 31/2-4 it has a supposed upside potential to $6 in the next few months. WJ