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  • Update: Oi Will Merge With Portugal Telecom Under What Conditions? [View article]
    @DividendInvestorLA, No. I am long PT.
    Aug 14 02:47 PM | Likes Like |Link to Comment
  • Update: Oi Will Merge With Portugal Telecom Under What Conditions? [View article]
    @invest2bfree,
    This business has got anything fair for minority shareholders from each side, both were betrayed by the dark businesses of their administrators.

    Merger is not a done deal yet. Failing agreement with OI in the new terms defined in July (following the failure of Rioforte) the risk of recourse to the courts remain. Losses arising from investment in the instruments may lead PT and Oi, and their shareholders, to engage in judicial or arbitrary disputes in order to determine liability concerning the contribution of instruments Rioforte under the capital increase of Oi and damage related to this contribution.

    If the merger does not go through, it is OI that is in a big trouble. PT can live very well without this deal.
    Aug 14 12:48 PM | Likes Like |Link to Comment
  • Update: Oi Will Merge With Portugal Telecom Under What Conditions? [View article]
    @Lionel, in my opinion the real issue is little confidence in corporate governance of these 2 companies.
    How can anyone understand that PT "lended" such vast amount of money to one of his shareholders, putting near half of corporate value at risk? Do you believe that no one else in Brazil knew this common lending practices? Mr. Granadeiro left the company saying that he is an honest man, but could not support responsibilities of others...

    Telecoms businesses need big economies of scale to succeed and in theory the merger is good. High debt is a big concern, however they can also divest some assets. If Zeinal Bava and his team can make in Brazil what they did in Portugal this would be very huge! And OI market cap would skyrocket.
    The big problem for me is how can this Board return confidence to investors?
    Imagine, if a big investor, like US activist Carl Icahn, decide to invest in these companies, confidence would certainly be fixed immediately.

    Besides all this problems, I think this moment is a good opportunity to invest some money in Telecoms. After 8th September we will have more news...
    Aug 13 06:11 AM | 1 Like Like |Link to Comment
  • Update: Oi Will Merge With Portugal Telecom Under What Conditions? [View article]
    @DividendInvestorLA,

    PT does not have a majority shareholder, and the maximum vote rights for shareholder is 10%.
    http://bit.ly/1rl4E7A
    Banco Espirito Santo and Instituto Gestão F.c. Segurança Social have got influence of Portuguese Government. RS Holding is also not satisfied with recent changes for the new board of corpco...
    I think 1/3 of the votes are enough to block the merger in the shareholder assembly.
    If OI insists on the new memorandum, I believe there will be no merger at all.
    Aug 12 03:39 AM | Likes Like |Link to Comment
  • Update: Oi Will Merge With Portugal Telecom Under What Conditions? [View article]
    @Hello Antonio,
    It is only my opinion about what is likely to happen. Our Portuguese Economy Minister, Dr. Pires de Lima, last week gave a very sarcastic interview to a newspaper, fiercely criticizing PT`s management and destruction of company value, saying he does not believe anymore in the virtue of PT merger with OI (after all PT % in the new company was reduced by the last memorandum to just 25,6%). Then PT`s CEO and Chairman, Mr. Henrique Granadeiro, resigned.
    After BES collapse, OI needs to find other shareholders (or buy PT shares) to approve the merger, it will not be easy...

    Recently some news appeared that major shareholders involved in the memorandum, Zeinal Bava; Granadeiro, knew about Rio Forte debt (it was a common practice of PT to lend money to BES since many years ago...).
    There are too many strange things happening, smelling fraud (Portuguese authorities are at this moment auditing PT, there are good chances of financial frauds).
    Antonio, did you studied last PT/OI Earnings Report? How will it be possible to return dividends to shareholders? Where are the 5,5 Billion euros merger synergies? How can they handle with 5,7 x Net Debt/EBITDA?
    Antonio, in my opinion OI is the hands of PT and will have no choice than giving 37,4% of the new entity to PT`s shareholders, otherwise the game is over for them.
    Aug 11 06:03 PM | Likes Like |Link to Comment
  • Update: Oi Will Merge With Portugal Telecom Under What Conditions? [View article]
    @Lionel, 8th September is the shareholder Assembly (http://bit.ly/1sIE2OF).

    I don`t believe the merger will be approved by the shareholders (I guess Portuguese government will give instructions to (ex-BES) and other government funds to vote against the merger. PT`s minority shareholders are very frustrated with this business. PT`s CEO and Chairman, Mr. Henrique Granadeiro, resigned.
    I would not be surprised if after the likely rejection of the merger, another company (maybe Vodafone) attempted a takeover....
    Aug 11 03:43 PM | Likes Like |Link to Comment
  • Apple's Q3 Bonanza: The Real Story May Be Not Quite So Bullish [View article]
    Mr. Michael Blair, Apple seems to have reached the Top.
    However, in terms of valuations, by my calculus, it has got the same metrics has Microsoft. Apple is not overvalued, it seems fairly valued.
    Ok, and what about the future?
    I know Apple appears, more than ever, to be a company of a single product: the Iphone, and that spells trouble for the future. But, if they succeed delivering a growth strategy (like Facebook) based in a buying spree and business alliances? Or have got the next "Big thing"? They have got the resources to do that....

    Mr. Blair, I think you will have success, in the near term, shorting Apple not because of the demerits of the company, but for the fact equity markets are poised to have a big correction (the end of the bull market?) in the next weeks.
    
    Good luck!
    Jul 26 01:37 PM | Likes Like |Link to Comment
  • AMD's Conservative Guidance [View article]
    @Ivousa, I am glad you went out with profits :)
    I am completely out of stocks and I guess I won`t regret myself. I expect negative returns from W.Street from now on.
    Good luck ivousa!
    Jul 25 11:31 AM | 1 Like Like |Link to Comment
  • AMD's Conservative Guidance [View article]
    @Ivousa, I hope this time you did sell your AMD`s before ER...
    Before S&P hit 2000? S&P closed today at 1988!

    Do we need another spark to begin the sell-off?
    http://bv.ms/1mKtvOn
    Jul 24 05:49 PM | Likes Like |Link to Comment
  • AMD's Conservative Guidance [View article]
    @e92m3, there are still some undervalued stocks in the market, don`t get me wrong. However, now I find (> 75%) too many overvalued stocks, even taking in account a low equity risk premium (I use a 3,5% premium).
    Unless the market expects high profits growth (I don`t believe how it will be possible, see the new IMF`s outlook for global economy), stocks are set for a major (20%-40%) correction (undervalued stocks will also be dragged down with the market).
    What can spark a sell-off? Geopolitical conflicts. Big bankruptcies, credit defaults, etc....
    Jul 24 03:31 PM | Likes Like |Link to Comment
  • AMD's Conservative Guidance [View article]
    @Fiberton, I prefer to be the "player" who left the "game" while was winning, than the one who stayed, trying to squeeze the last drops and finished losing all.
    Jul 24 01:15 PM | 2 Likes Like |Link to Comment
  • AMD's Conservative Guidance [View article]
    Sean, AMD is doing this turnaround too slowly to catch investors confidence and the debt load is too big. Maybe it is not a conservative guidance...
    
    Be aware that stocks in general are now overpriced and a sharp market correction is eminent (the end of the bull market?). I got out of stocks this week.
    Good luck for AMD and for all investors.
    Jul 24 12:57 PM | 2 Likes Like |Link to Comment
  • Apple Earnings: A Tale Of 2 Devices [View article]
    Apple`s growth in a single product spells trouble for the future.
    Stocks are beginning to be overpriced everywhere...
    Goodbye stocks.
    Jul 23 09:48 AM | Likes Like |Link to Comment
  • Are Flat Revenues Really IBM's #1 Problem? [View article]
    Flat revenues can be a great problem for solid and very profitable companies when there is a big bubble in high growth stocks. Analysts tend to recommend other "appealing" stocks. We saw this some years ago, before the end of @ bubble....

    IBM for the long run.
    Jul 22 05:46 AM | 1 Like Like |Link to Comment
  • The Fed's Financial Repression At Work: How Big Blue Was Turned Into A Wall Street Slush Fund [View article]
    @naivesummer, good point (buybacks were less than 1.8 billion). That`s another way to see that IBM is not inflating their stock price with buybacks!
    But by making buybacks, shareholders are getting much more control and much more dividends for each $ invested.
    Companies should invest or return excess of money to shareholders, not keeping it on the balance sheet.
    Jul 20 07:14 PM | Likes Like |Link to Comment
COMMENTS STATS
371 Comments
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