Telemig Celular (TMB)

We are keeping our Buy recommendation on Telemig Celular Participacoes S.A. (TMB). Despite the weak economic conditions throughout the world, Telemig posted great results for the fourth quarter 2008.

We believe that the stock remains attractively priced, given the company's positive short-term growth trends. Additionally, a more relaxed monetary policy in Brazil and the company's proposed dividend are very encouraging.

Finally, we believe Telemig's valuation will converge with that of Vivo in the upcoming quarters. In the medium term, Telemig will be incorporated into Vivo, creating considerable synergies.