"May 23, 2007-Tele Norte Leste Participacoes ADS: Downgrades to 3 hold from buy Analyst: Ken Leon, CPA Given the recent strength in the ADS price, now near our $19 12-month target price, and given the risks of a sales or earnings miss in 2007 and of volatility in the Brazil equity market, we would no longer add to positions. We forecast 7% revenue growth in 2007 driven by TNE's faster-growing wireless unit. And we believe the company is stabilizing its wireline business as it benefits from its faster-growing wireless unit. Applying a p-e of 10.4 to our 2007 earnings per ADS estimate, below peers, and with a 5.3% dividend yield, we would hold TNE ADSs."
Would you continue to hold at this level or sell and lock in profits? I found this "hidden gem" without a broker. I have 500 shares and an approximate gain of $2500 down from a profit of over $2700 a day ago. I've been told that Standard and Poor's research is not the greatest, and the outlook and dividend still seem good to me.