PT - Portugal Telecom

[alertmeipp]

I think this will only be a short term in and out for me.

 

If they get the money back soon,  this will be up a buck  or two. If they don't,  I don't see this going much  lower unless Portugal gov somehow manage to screw up completely.

[DanielGMask]

This is not for me, but a blogger I follow (which by the way called the Gowex fraud even before Gotham) is buying: "@INVESTMENT_RED: Compramos Portugal Telecom con objetivo 4,2€ este mismo año y 10,80 € a 3 años vista. http://t.co/RFg3egVWrA la mejor inversión posible." Do your own research, as I said, this is not for me!

[LowIQinvestor]

***Banco Espirito Santo S.A. Cut to B+ from BB- by S&P***

 

I'm getting interested now :)

[indythinker85]

Market cap drop close to one billion  since the news.  All these for three percent rate on the CP.

 

I hope oibr pull out their merger.  Does not look like competent management at all.

 

Klarman is in  and hes having a solid year, not sure why hed buy the equity also does not seem like typical klarman investment but... http://www.valuewalk.com/2014/07/baupost-returns-2014/

 

As Banco Espirito Santo SA (ELI:BES) tumbles today, a victim of the larger concerns regarding Portugal’s sovereign debt stability, the bank is announcing that Seth Klarman’s Baupost has recently acquired a 2.27 percent stake in the firm.

 

http://www.valuewalk.com/2014/07/banco-espirito-santo-baupost/

[LowIQinvestor]

Thanks for sharing the news about BAUPOST (Seth Klarman) buying!

 

I may just buy PT and Banco Espirito.

 

 

[topofeaturellc]

He's been quite active in Iberia in the non-equity space. Real Estate, I think some distressed loans?

 

But its always hard to read too much into a holding like that - 2.7% of Espirito Santo is not a big position given his total capital.  He could just be viewing like an option on survivability, or maybe something else he thinks could be lucrative down the road (buying assets, re-caping at a really advantageous price, etc.)

[peter1234]

He's been quite active in Iberia in the non-equity space. Real Estate, I think some distressed loans?

 

But its always hard to read too much into a holding like that - 2.7% of Espirito Santo is not a big position given his total capital.  He could just be viewing like an option on survivability, or maybe something else he thinks could be lucrative down the road (buying assets, re-caping at a really advantageous price, etc.)

 

Agreed, Klarman is incredibly hard to understand/follow.

He is a distressed debt investor first and foremost. This is where most of his assets are allocated.

Only a small sliver is in equities.

;)

[LowIQinvestor]

"In early 2007, the Portuguese conglomerate, Sonae's takeover offer for Portugal Telecom failed. PT's board rejected an initial bid, worth EUR 11.1 bn" ---whoops

 

I'm leaning towards buying PT: Like their market share, valuation, and exposure to Brasil.

[LowIQinvestor]

Today is a big day for Espirito Santo and PT.

 

Portugal Telecom may be hit by default from Espirito Santo investment, WSJ says:

"Portugal Telecom could be hit by a default from an investment it made with Espirito Santo International, which was found to be in a "seriously financial condition" by the country's central bank, the Wall Street Journal reports. PT previously disclosed that it had $1.22B in commercial paper from Espirito Santo's Rioforte."

 

http://online.wsj.com/articles/european-shares-broadly-flat-1405412863?mod=yahoo_hs

[LowIQinvestor]

Espirito Santo Bonds Rally on Shareholder Assurance:

 

http://www.bloomberg.com/news/2014-07-16/espirito-santo-s-rioforte-fails-to-repay-1-2-billion-of-debt.html

[LowIQinvestor]

SÃO PAULO--The financially-stricken Portuguese financial group, Espirito Santo, is planning to sell nonfinancial assets in Brazil that could raise more than 1 billion Brazilian reais ($449 million) to help pay down debts, according to a person familiar with the bank's thinking.

Family-run Espirito Santo, one of Portugal's largest economic groups, has been roiled by troubles at one of its units, Espirito Santo International. A unit of the group, Rioforte Investments, on Tuesday missed a payment of EUR847 million ($1.15 billion) to Portugal Telecom.

"If all of the nonfinancial assets in the country were sold it would be possible to raise more than 1 billion reais. But that is still being decided," the person said.

 

 

[LowIQinvestor]

**Brazil's Oi, Portugal Telecom Lose Investment-Grade Status From Fitch**

 

Way to be proactive Fitch!

 

 

PT is getting very interesting now.

[topofeaturellc]

Looks like BES just agreed to backstop all of the GES CP - except for PTCs.

 

LOL

[crastogi]

Anybody been following this?  Down to $1.34 now