Portugal Telecom, SGPS (ADR) (NYSE:PT)

Strong stock with solid dividends that will pay off in the long run. A strong balance sheet and the expansion into new markets (ie. Brazil) are only a couple of the reasons that PT is a major buy!

Portugal Telecom SGPS, S.A . Co is right in the heart of the disruped Eurozone and Mr. Market has written it off as dead. It's a little more difficult for ADR US listings in this current situation, even one that pays a 13% dividend at today's share price. The issues are that part of that could be subject to a foreign tax. They only pay annually in May. No one knows how stable the dividend will be that far out. Historically the price does fluctuate and rise near dividend time. A lot of investors time the dividend, some to sell in advice at the highest share price of that time period and some to get the dividend and lower their acquisition price. So while PT may struggle, there may be an out in May before the next round of sell in May and RUN, RUN, FAR AWAY!!!

Portugal Telecom despite being in the dreaded Eurozone area of Portugal also operates in Brazil. Margins are decent for a telecom and the selloff has them at 1.4 Book. $17 Billion in debt is typical of a telecom, but Portugal Telecom has managed to hold $4 Billion in cash as a serious cushion after selling off one division a year or so ago. Potential problems became more apparent after their last quarterly report indicated that costs had gone up considerably. Revenue and costs BOTH nearly doubled. The 25 stake in Brazilian telecommunications group Tele Norte Leste SA is confusing the data. The increased costs are partially due to upgrades to 4G from 2G and will take some time to absorb. AS a result of hte upgrades Broadband sells are increasing.

Overall a tricky one to value in a tricky economy in a tricky spot in the distressed Euro area. I like their growth potentials, especially in Brazil and at $7 they appear to be priced with a decent enough margin to warrant the risk/reward.

While they have had an erratic share price for years, I'd be looking to try to hold this one, especially if they stabilize before dividend time in May.

The company has a great dividend yield and the management is doing efforts to mantain the dividend. Although PT is a Portuguese company they have exposure to Africa anda Brazil.

The stated div yield of 11+% isn't that reliable, but it's not entirely implausible to expect a respectable 5-6%. It's a good value based on p/b and p/s.

-Lee

The stock is becoming to cheap people will always need phone service just because it says Portugal the service Africa Brazil I just do not see them going anywhere but up.

unbelieveable cash flow per share....decent yield...struggling economics in portugal may have affected an otherwise promising stock

tracking what seems like a decent dividend stock here

We all have cell phones implanted in our ears, and other countries are even more dependent on the cell phone because it is an easy, cheap infrastructure compared to land lines.

With negative expected long-term earnings growth, this company appears to be in secular decline.

Telecom stock - high dividend, and relatively down in price. That says "buy" to me.

I think these high-yield, solid telcos are safe and relatively counter-cyclical as the younger set is more online and connected than ever ...

I like Fado...but more than that I like foreign mobile providers. The dividend isn't bad either.

Dumb follower of Global Gains. I dont know anything about PT but I think when gas goes up, people travel less to meet each other. So they will take the phone to talk. Particularly in Portugal. Portugese like to talk a lot and fast.

I am bullish on PT because of its operations in Brazil and Morocco, two countries which are currently booming.

Significant market share with expanding global reach

PT is trading at a 43% discount to its intrinsic value with lots of growth potential in a wide-open market.

value buy

Sum is more valuable than the parts kind of play. With a 50% stake in Brazil's Vivo driving growth and the predominant position in it's native Portugal i see some value in the shares here.

Phone Co in Portugal/Bazil (yes, they spk Portugueze not Span there). A "recovering utility" that just reduced its div. Still a lot of cash flowing in (but like all utils a lot of debt). like Nam Tai, considerable risk but a lot more upside room than downside room.