MTN GROUP Ltd. (NASDAQOTH:MTNOY.PK)

CAPS Rating: 5 out of 5

Recs

1
Player Avatar megalong (< 20) Submitted: 3/2/2010 8:58:49 PM : Outperform Start Price: $13.11 MTNOY.PK Score: +0.26

MTN is a South Africa-based telecom with operations in 21 countries in Africa and the Middle East. They have operations in Swaziland, Zambia, Uganda, Rwanda, Botswana, Nigeria, Cameroon, Congo-Brazzaville, Cote d'Ivoire, Benin, Ghana, Guinea Bissau, Guinea Conakry, Liberia, Iran, Afghanistan, Cyprus, Sudan, Syria and Yemen.

They are currently trading at 12.8x trailing earnings. They have seen great revenue and earnings growth in recent years. The balance sheet is a weak spot however - they are trading at 7.7x tangible book and have a low current ratio. They look attractive now on a recent pullback from the $17.50 area.

Other telecom I like: NIHD, NTT, DCM, IIJI, TKC, TSP and TLKGY.PK along with telecom related services like TNDM, RRST, and IRDM.

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