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Moving TSP to a "Buy"
The ADR Alert
Thursday, November 18, 2004
By Alexander Green, Investment Director
Email – #38
** Moving TSP to a “Buy”
Since our last broadcast, we’ve gotten third-quarter results from Telecomunicacoes De Sao Paulo (NYSE: TSP), Brazil’s leading fixed-line phone company.
And they were exceptional. The company reported a net profit of $190 million – up more than 20% – beating market expectations on the back of price increases, more high-speed Internet services and higher long-distance revenues.
In particular, subscribers to its high-speed Internet service increased 69% over the same quarter a year ago, boding well for future growth.
Based on these results, and the recent improvement in TSP’s share price, I’m putting this stock back on our buy list.
Our shares of Banco Bilbao (NYSE: BBV) continue to trend up, as well. The Latin banking giant recently reported a 23% rise in net income. And our shares have recently hit a new 52-week high.
We have a short-term gain here of 24%. Move your sell stop here up to $15.50 to protect your profits.
China Life Insurance (NYSE: LFC) has also been strong out of the box. The stock is up 8% since we began buying last week. And our January $40 calls have already doubled.
I believe this stock still has a long way to run.
Things have been quiet lately with Sasol (NYSE: SSL), however, the second largest industrial company in South Africa. The company is a major player in the commodities market, active in coal mining, crude oil refining, petrochemicals and petroleum exploration.
The stock is only trading slightly above our entry price, but we’re collecting a 3.22% dividend yield, as well. So let’s give this position more time.
Another nice dividend payer for us is Lan Airlines (NYSE: LFL), Chile’s leading air carrier. It’s paying us 4.26% and is moving the right way. With oil prices moderating again, the growth potential here is improving. Keep buying.
Finally, our Russian cell phone company Mobile Telesys (NYSE: MBT) has been bouncing around like a pingpong ball lately. One week we’re up, the next week we’re down.
But look at the chart. This stock is still in a major uptrend. And earnings were up 128% in the first half, on a 64% jump in revenues.
We get third-quarter results from MBT next Tuesday. And I’m expecting good news.
Next week is a shortened holiday week. So you’ll receive your next International Trader Alert the following week, which will include a complete summary of results from MBT.
Here’s wishing you and your family a happy and prosperous Thanksgiving!
If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or e-mail: viptrader@oxfordclub.com, or contact Pillar One Advisor Greg Galloway at 800.438.3040 or 407.667.4729.
Stock
Country
Current Price
Comments
China Life Ins. (NYSE: LFC)
China
$29.82
Buy at market. Place a sell stop at $22.
Mobile Telesys (NYSE: MBT)
Russia
$139.18
Buy. Sell stop is $116.
Sasol Ltd. (NYSE: SSL)
South Africa
$20.09
Buy. Sell stop is $17.
Lan Airlines (NYSE: LFL)
Chile
$25.82
Buy. Sell stop is $21.
Tel. De Sao Paulo (NYSE: TSP)
Brazil
$18.20
Buy. Sell stop is $15.
Banco Bilbao (NYSE: BBV)
Argentina
$16.20
Buy. Move sell stop up to $15.50.
Bio: Alexander Green is the Investment Director of The Oxford Club. A Wall Street veteran, he has over 16 years experience as a research analyst, investment advisor, and professional portfolio manager. Mr. Green is also considered one of the most talented financial writers in the business. He’s been featured on “The O’Reilly Factor,” profiled by Forbes and Marketwatch.com, and has written for Louis Rukeyser and several other leading financial publications. He currently writes and directs The Oxford Club Communiqué, the Oxford Insight e-letter, and four elite trading services: one focused on momentum stocks, another focused on companies with significant insider buying, another dedicated to international growth stocks and another focused on short-selling fundamentally flawed companies. Mr. Green is also a top-rated speaker at financial conferences around the country.
Copyright – 2004 The Oxford Club, LLC. The Oxford Club does not act as an investment advisor or advocate the purchase or sale of any security or investment. The Oxford Club expressly forbids its writers from having a financial interest in any security recommended to its readers. All of our employees and agents must wait 24 hours after an Internet publication prior to following an initial recommendation. And for hard-copy-only publications, 72 hours after the publication is mailed. Investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. The Oxford Club provides its members with unique opportunities to build and protect wealth, globally, under all market conditions. The executive staff, research department and editors who contribute to The Club’s recommendations are proud of the reputation The Oxford Club has built since its inception in 1984. We believe the advice presented to its members in our published resources and at our meetings and seminars is the best and most useful available to global investors today. The recommendations and analysis presented to members is for the exclusive use of members. Copying or disseminating any information published by The Oxford Club, electronic or otherwise is strictly prohibited. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. Recommendations are subject to change at any time.
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