Private Trader

Brazilian Telecom Going Monopolistic

IE - short term traders might want to trade now, while long termers will want to hold out for at least $22 or more per share.

Brazilian Telecom Going Monopolistic

Today TNE closed at 19.14 which is very close to the the 22 target I made earlier. I continue to believe this stock will rise to 22 or more, but would not count on this happening too quickly.

Brazilian Telecom Going Monopolistic

Today TNE closed at 16.49. According to yahoo at that price it has a 9% dividend. While the current price may represent a short term high on a rally which is now rolling over, in the long term I believe that TNE will rise over $22 / sh. It should also be noted that Brazil and China are becoming increasingly close trading partners.

Brazilian Telecom Going Monopolistic

Yes. The lion hearted must also move quickly. In the mail, as a holder of BTM, shortly after writing the article, I received what appeared to be a tender offer for my BTM shares. It was quite lengthy and did not have time to read the details and/or ensure that my shares would be bought out (although the offer did appear that way). Anyway, with BTM not moving up or down much, and TNE going down way more than appears reasonable, I decided to exit BTM more or less at my entry point. (I hope I do not regret that as the $42 buyout would have been a clear profit). I did this because TNE appeared to be going down so low and fast that I wanted dry powder. Now at 22/sh, it is way lower than I thought it would go and I need to see whether any real reason supports its decline or whether it simply is an irrational market making it an even better buying opportunity than I earlier thought it was. I am also keeping an eye on commodities and drybulk shipping. Again, unlike the more diversified American economy, Brazil is a commodity driven country. It makes no sense for its stocks to be going down right now. Do your own due diligence, but I think that after the American presidential election and position on Iraq and interest rates becomes more clear (not necessarily better, just more clear), larger amounts of money will start pouring into the market again. And again, due to commodities, Brazil's economy should be one of those that rises more quickly than others. Meanwhile, I am frustrated that things aren't moving in that direction a bit more quickly. Everyone should do their own due diligence, and these are just my personal opinions, but right now I believe cash and/or commodities are king... Hopefully, we'll see a bit of move up on Monday, I will continue to watch TNE for a bottom now (and would appreciate any technical support anyone else can provide as I almost bought into last week and now am perplexed as I never would have thought it would go down to 22/sh). Of course, one advantage to staying out of an irrational market is that it is less likely to drive you crazy. I think I'm good at spotting trends, but again, I'd appreciate it if someone with some technical skills would suggest support levels for TNE. Thanks.