Tele Norte Leste Participacoes Shares Popped: What You Need to Know (TNE.DL)

Tele Norte Leste Participacoes Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Tele Norte Leste Participacoes (NYSE: TNE ) are rallying nearly 15% today, with no apparent news story to indicate why the stock would be up so much.

So what: It's a bit hard to decipher what could be the driving force behind today's move, outside of the fact that the company had traded more than four times its daily share volume by midday. Day traders could be testing key technical levels in the stock or investors could be buying into the bullish story surrounding rising cellular phone usage in Brazil.

Now what: News story or not, Tele Norte Leste presents shareholders with a strong growth opportunity at a fraction of the forward multiples you'll often find in the United States. One worrisome concern with foreign telecoms, though, is you run the risk of less long-term visibility, and that could be a problem. Tele Norte Leste missed analysts' profit projections by a mile in its most recent quarter and that speaks exactly to the fact that long-term views of foreign telecoms are hard to determine. Still, at just 8.7 times forward earnings, this foreign telecom deserves a spot on your watchlist, even after today's spike.

Interested in more info on Tele Norte Leste Participacoes? Add it to your watchlist!

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Fool contributor Sean Williams holds no position in any company mentioned in this article. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Report this Comment On May 24, 2011, at 2:22 PM, blake303 wrote:

http://online.wsj.com/article/BT-CO-20110524-706610.html
Report this Comment On May 24, 2011, at 4:14 PM, Schmacko wrote:

For people who can't read all of WSJ.com here's the news of what's going on:
Brazil Telecom Firm Oi To Simplify Ownership Structure >TNE
8:11a ET May 24, 2011 (Dow Jones) Brazil Telecom Firm Oi To Simplify Ownership Structure >TNE
SAO PAULO (Dow Jones)-Brazil's largest telecommunications company, Tele Norte Leste Participacoes S.A. (TNE), or Oi, on Tuesday unveiled a plan to simplify its ownership structure to make its shares more attractive and reduce operating costs.
The firm plans to fold four existing group companies into one single firm, Brasil Telecom SA (BRTO4.BR, BTM), which will be renamed as Oi SA. The group would have just one company trading on the local stock exchange and also on the New York Stock Exchange.
Oi said the changes would increase its trading volume by concentrating it all in one company. Currently, the group has three publicly-traded companies with seven different classes and types of traded shares, some listed in Sao Paulo and some in New York.
The company also said it plans to unify its financial statement and dividend policy.
Oi said it expects to get shareholder approval for the changes within 180 days.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3544-7071; rogerio.jelmayer@dowjones.com
The other news for today was that S+P maintains it's hold rating with a price target of $19.
Report this Comment On May 24, 2011, at 6:59 PM, ASPno1 wrote:

Or straight from the horses mouth:
http://ri.oi.com.br/oi/web/conteudo_en.asp?idioma=1&tipo...

updated 10 hours ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

TNE.DL	$0.00		+0.00	+0.00%
Tele Norte Leste P…		CAPS Rating:

0

Tele Norte Leste Participacoes Shares Popped: What You Need to Know

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Comments from our Foolish Readers

Report this Comment On May 24, 2011, at 2:22 PM, blake303 wrote:

Report this Comment On May 24, 2011, at 4:14 PM, Schmacko wrote:

Report this Comment On May 24, 2011, at 6:59 PM, ASPno1 wrote:

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