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$26.18 -0.29 (-1.10%)
10/7/2008 4:03 PM

France Telecom (ADR) (FTE)

CAPS Rating:
*****

The Company provides consumers, businesses and other telecommunications operators with a range of services including fixed telephony and mobile telecommunications, data transmission, Internet and multimedia, and other value-added services.

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Avatar darkflame (97.43) Submitted: 4/12/07 7:28 PM : Outperform Start Price: $24.04 FTE Score: 39.42

Boring, old France Telecom doesnt innovate but sports a hot dividend. Telecoms innovated a lot, now it's time to get profits. Bandwith increase gets fairly cheap since all the investment in fiber optics is already done, nowadays upgrades are done just replacing the transmissors with faster ones, but the same cabling... that doesnt sound like a lot of investment to me. Low P/E, High return on Invested Capital.

Moreover, it's not an american company...so, of course it will beat the S&P. The S&P is crowed with bad american companies where the CEO's pay themselves shamelessly, crowded with innovative companies that really innovate but give no profits to their shareholders. The S&P is doomed to lose against any quality european stocks.

What else ? High dividend companies have historically beaten the S&P too.

Here be no dragons. Outperform!

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