Partner Communications Company Ltd (ADR) (NASDAQ:PTNR)

Will outperform in the short term but will lag the index due to industry and competitive pressure in the telecom market in Israel. The govt's almost anti-business stance when it coem to telecoms spells doom for PTNR and Cellcom. Earnings release today point to a dividend reinstatement hence a likely upswing in the weeks to come:

http://torontostar.morningstar.ca/globalhome/industry/news.asp?articleid=448536
Partner Communications' PTNR third-quarter results were on par with our expectations and reaffirmed our belief that the Israeli telecommunications space is becoming more competitive. In the third quarter, Partner sales fell 7.2% sequentially to NIS 1.751 billion due to variety of factors: Partner paid out NIS 26 million in settlements, smartphone sales fell off 25%, and increasing competition pressured revenue per customer. On top of this, Partner calculates that the government reduction in connectivity tariffs cost the firm at least NIS 282 million in service revenue during the third quarter. While the firm's major competitors, Cellcom CEL and Pelephone, have also struggled with the new government regulations, we believe that operational slips and changing management have, and continue to, limit profitability at Partner. Since the third quarter of last year, the firm's operating income has fallen to NIS 314 million from NIS 476 million and operating margins have slid to 17.9% from 28.8%.
More surprisingly, Partner reinstated the quarterly dividend and announced that it would distribute 80% of third quarter profits. This is an unexpected reversal as the company had higher margins and generated NIS 30 million more in profits in the second quarter, when the dividend was suspended. We are concerned that the dividend reinstatement is premature and that Partner may need to make additional infrastructure and marketing investments if the competitive situation continues to worsen. Still, Partner's third quarter was in line with our expectations and we are maintaining our fair value estimate.

With the loss of it's dividend the stock isn't worth the gamble.

Good growth potential, nice dividend.

Picked from a screen that looks for stocks with low pe/roe ratios and then further looks for the lowest possible forward pe ratios. This screen typically outperforms by 20% or more based on backtests over the last decade. No other due diligence performed.

Nice dividend paying stock with a near monopoly. Only downside is the geopolitical issues.

Very stable company. Great dividends!

Dividend yield is higher than its P/E. Other than liquidity and Israel stability concerns, not sure why this stock is so cheap.

Bounce off lows is likely.

Near 52 week low, strong earnings.

coming off big sell off, owns 93%+ of the thier market. and great dividend.

good management, good earnings trends. solid dividend.

I have owned a position in this stock on & off since it was listed on the TASE. Recently I bought a small number of shares in anticipation of both the expected large Dividend & also its entry into the Wireless Laptop business in Israel ( selling both the computers, wireless devices & internet use packages ) which is gathering momemtum & will be another revenue stream for Partner which did not exist before summer 2009.

EPS 08: 6.73...pe 2.84
EPS 09: 7.31...pe 2.62
EPS 10: 7.56...pe 2.53

I've been threatening (myself) to buy Partner Communications for the last 2 years. Ever since I stumbled into them on a dividend hunt. Since then, they have gone through some changes. The primary being the transfer of the majority ownership from Hutchison Telecommunications Intnl. ltd., a large Hong Kong telecommunications company, to Scailex Corp., Ltd. on
August 12, 2009. Scailex Corp is an Israeli company that is transfering its money and operations from oil to cell phones. The transfer went smoothly and the dividend hasn't been reduced (yet) so I've enlisted its help in my retirement fund restoration project.

Gotta love the Israelis.at least from a digital perspective.

excellent position in communications market. appears undervalued right now.

Good consumer base, good dividend, solid fundamentals. Nice long term choice.

As with all my picks: A very attractive P/E, excellent EPS growth rate and high five year growth prospects.

This is a stock I had bouth at 15 and sold. With the recent draw back, I am fullspeed ahead on a buying back in. At a 6+% dividend, overseas stock, and adding in the necessity of mobile communications in Israel, if it goes below 21 the DIV would be even better and I would fill my pockets some more... Get on the DIV train and get paid to wait.