While investing in any company, the current risk/reward ratio is higher than 1 year ago. In principal I agree with your elaborative analysis. However, I must admit your scenario is to negative.
Banks have too much to lose if they didn’t renegotiate loans. It would to be an overwhelming case. Just when credit crisis is easing Banks will be pushing the juniors to the wall first and than bigger companies. If TIM was able to clean up a mess, focus on profitable operations and implement-required changes, it might reappear stronger and well positioned.
Cheers NJ
TIM Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
