Telefonica S.A. (ADR) (TEF)

Great dividend exposure to growing economies, first mover advantge or little competition. Strong management, lot´s of cash.

Latin America exposure and it's 5 star. The top guys and TMF's definitely know more than I do. If I have to ride up along on their coat tails and make some pocket change myself, then I'm more than willing to do so.

As the world's third-largest wireless provider, Telefonica pays a rich 4.8% dividend. While headquartered in Spain, the telecom giant has been gaining significant market share in Latin America, one of the up-and-coming emerging markets. Recent developments include a joint venture agreement with Chinese mobile provider China Unicom, allowing the company to tap the growth there. Analysts expect Telefonica to earn nearly $7.40 a share in 2009, more than enough to cover the dividend and further help grow those earnings at an expected 4% in 2010.

On a negative side: Telefonica had a huge run (but so did the whole market) and Spain is one of the weakest countries in Europe with extremly high unemployment.

Category: IYBP

Comparative favourable ratio revenues/debt and profits.

#1 telecom in Brazil (among other places), good dividend

P/E ratio is low, dividend is high, underlevertage

testing >40 roe, >20% 3yr and 5yr growth [only 8 picks]

Reload on strong 2008 results, business remains solid, growth in latin america and keep building opportunity in the Chinese market. 2009 estimated PE below 9.

Current Holding

morningstar screen

technical recommend 12/23

The best telecommunication company in the developed nations!

In Mexico, people will soon be able to pay for small purchases such as restaurant meals and taxi rides using their mobile telephones. Telephone operator Telefonica SA is teaming up with banks such as Citigroup Inc and BBVA to launch the service, marketed at first toward tech -savvy teenagers.

Reuters reported today that Telefonica has beaten its 2009 target of 150 million subscribers in Latin America more than a year in advance, with a 147.9 million-strong subscriber base in Latin America at the end of June.
Latin America is now the main driver for Telefonica's expanding client base, providing 75 percent of the company's subscriber growth.

The stock is up today on this news, but it’s been beaten down sorely in recent months and I think it's a good opportunity.

Don't forget they are linked with iPhone . . .

This company has an attractive year over year growth rate. Price to Book is acceptable. It pays a nice dividend, and it provides solid exposure to fast-growing Latin America. The wireless market there is exploding. The only downside is a high debt ratio. I don't think the debt ratio is going to be a huge problem.

Active

to cheap

Strong ROE and growth potential. Earnings yield is over 10% and dividend yield is over 4%. Target price is $120.

Thumbs up to those that know the business well, and for the most part, do not cheat their way to the top.

International tel play.