Galb, well said. cel phone is an ever growing market in Brazil with a very low penetration if compared to other developed countries. TIM has also acquired a broad band TV supplier and this combination is expected to boost the business even more. The secretary of communications in Brazil has also recently mentioned that the sector suffers from high taxes and that may mean that the government is planning to reduce it. At this point in time, not considering all future potential you mentioned, TSU is just waiting a small catalyst to relocate back to 10.00 level (in Brazil) vs 7.89 as it closed yesterday. Im not sure why but TSU in Brazil now trades in the range of 7.80 to 7.90. Another catalyst in Brazil will be Christimas, Brazilians are great consumers (have just been exposed to easy credit lines) and the government is doing its best to boost the economy. No matter what, TSU has ahead very good short term bullish ingredients which could significantly improve not only TSU but the sector by itself. Another good pick in this sector is VIVO.
I agree poppa that vivi is another good one to watch but I think the recent shorts attack n tsu has made tsu the best buy in the sector including when you compare the sector with those of other countries. With the olympics coming to brazil and the nationwide domination that Tim has on cell phone usage, you just can not get enough at these prices. I am not worried at all about the govt inquiry into their records. Think the shorts got the heads up on this and over reacted. I need to free up cash to buy a mother lode of shares in tsu. Are you with me or not poppa?
Ps, see the buy rating the street just gave tsu!!!! Yea!!!,
The only reason for bargain basement prices is the shorts. TSU is a long term buy and hold. They dominate the wireless market in Brazil which is an ever growing market. A large part of the population do not have landline service and that population is mostly using Tim. TSU will be trading $100+ per share in the future. Buy it and just leave it in your portfolio for a few years. There is no match to how much you will make long term holding than day trading other companies. It is almost a certainty to me that you will come out way ahead of the game than if you had been trading frequently with the same funds. You will also save yourselves much time and aggravation. My purchase here now will end up paying for all my grandchildren's college tuition in a few years forward. You are looking a gift horse in the mouth now. This is all possible because the shorts got carried away.