STOCKCHASE

Recently cut their dividend and there is risk of another cut. Their Latin American operations aren’t growing quickly enough to offset what is going on in Europe.

2012-01-20

Comment

17.090

Paul Gardner, CFA

Has underperformed to the euro. It is a big component of Spain's equity market. Brazil and Latin America is about 40% of their cash flow. Growth in Latin America on the telco side is quite large. Dividend is getting closer to where it is hitting the 80%-90% payout but he thinks it is sustainable. Prices starting to look attractive.

2012-01-18

DON'T BUY

16.960

If you are looking for a company with better fundamentals in terms of a growing phone market as opposed to one that is already saturated with Telefonica’s hand market in Spain, buying its subsidiary in Brazil makes better sense.

2012-01-13

BUY

18.740

Possible the 11.25% dividend could be cut but you would still have probably 5%. You have to believe that emerging market exposure is enough to offset downturn in its major markets such as Spain. Latin America looks pretty good. It's at the bottom of its range and you probably won't be hurt too badly.

2011-11-18

DON'T BUY

18.520

Recently sold his positions. Currently yield of about 13% and feels the market is pricing in a dividend cut. Pretty obvious the company can’t support current dividends. Expects dividend cut of 50% in 2013. Also Brazilian mobile penetration has gone through 100%.

2011-11-17

TOP PICK

19.740

Largest Spanish telecommunication company but only get a 3rd of their revenue from Spain. One third comes from the rest of Europe and the rest comes from Latin America. Trades at about 9X earnings and about 10% free cash flow yield. The key is Latin America which is their growth area.

2011-11-07

BUY

20.510

Paul Gardner, CFA

Spanish Telco. Likes that the main revenue growth is out of Latin America. So as EU spins out of control 40% of revenue is Latin America. When you are shorting the EU market, this is one of the largest market cap in the EU. The dividend is safe and there is capacity to grow.

2011-10-11

TOP PICK

20.110

Largest Spanish telecom company but Spain only makes up about a third of the revenue. The rest comes from other parts of Europe and their jewel of emerging markets and South America. Dividend yield of about 9%. Trades at 8X earnings. High free cash flows yield.

2011-10-06

BUY

18.890

Mark Grammer

The kind of company that may not fit into his criteria of looking for growth stocks but would fit in for certain investors because it has a very good dividend yield, which should be fairly sustainable. If you are looking for dividend yield and a safe investment, he wouldn't be against this one. Even if they have to cut the 12% dividend in half, it is still a good bargain.

2011-09-26

Comment

18.020

Good Latin America and emerging market exposure. Based in Spain, which is not the most enticing outlook but South and Latin America will compensate. As long as Europe doesn’t crash and burn completely, this should be a decent long term investment.

2011-09-09

TOP PICK

19.950

Spanish telecommunications company. One third of revenues come from Spain, another third from the rest of Europe and the last third from Latin and South America. Trades at about 9-10 times earnings. Payout a lot of their free cash flow in dividends and he would like to see them cut this. Latin America is growing data at 40%. Really good growth story.

2011-09-02

SELL

20.510

Growth in Latin American operations has not been enough to keep them from Spanish economy. Don’t have refinancing risk until 2013. Safe to say he is reconsidering position. Doesn’t think dividend increase they promised will continue.

2011-08-30

DON'T BUY

20.730

Andrew Hamlin

Spanish telecommunications company. A lot of exposure in Europe but it's growth markets are in Latin America. Attractive dividend yield of about 10% but he is concerned about its sustainability. Missed on their quarterly numbers and management guided limited growth for the balance of the year. Would prefer CenturyLink (CTL-N).

2011-08-16

Comment

23.810

Global wireless play. Spanish-based but the big thing is it is a major player in Latin America. Great stock with a yield of 9%. The real problem with this one is their domestic Spanish and European markets. An alternative would be Vodafone (VOD-Q).

2011-06-23

TOP PICK

23.810

68% of revenue comes from outside of Spain- emerging markets. 9x earnings, almost 9% yield. Emerging market exposure without the risk.

2011-06-23

BUY

23.280

If the European economy starts to settle down, this stock will offer substantial material capital appreciation over 2 to 3 years. There will be some short-term volatility. 8.5% yield is sustainable.

2011-06-13

DON'T BUY

24.070

Lots of business in South America and Europe but he would tend to focus more on the domestic telecoms like Bell (BCE-T) and Telus (T-T) but also owns AT&T (T-N) and Verizon (VZ-N). These companies have gone through pretty good restructuring.

2011-05-18

TOP PICK

23.850

Spanish telecom. One third of revenues comes from Spain, one third from Europe and the rest from Latin/South America. Trades at 9X earnings and 9% yield, which is very sustainable and could be increased over time. Good way to play emerging markets.

2011-05-13

Comment

24.870

David Baskin

An interesting thing he is seeing in mobile devices is the increased use of band widths and these companies get into the business of reselling this. He is a believer in this space.

2011-05-05

TOP PICK

25.640

Paul Gardner, CFA

One sector that is compelling is Telco space, but as well, this company was hurt during the Spanish meltdown. Tremendous free cash flow. 40% exposure in South America. Margins are around 45% in Brazil. Safe way to participate in the emerging markets. Looking for increased dividends in the next couple of quarters.

2011-04-05

TOP PICK

25.300

Favourite European telecom, largest in Spain. The rest of Europe and Latin America is 68% and that is going gangbusters. Great Yield, 8%, 9 PE, great growth profile. All those people in Latin America will move to data at some point. Dividend increase anticipated.

2011-03-24

HOLD

24.920

Situation in Spain is a drag on the stock as it is on most European stocks at this stage, but a significant amount of their earnings comes from outside of Europe. Latin and South America in particular. Good dividend yield.

2011-02-11

Comment

25.260

Rick Stuchberry

Spanish Telecom. He owns Vodaphone (VOD-Q) because he felt it had more emerging market exposure. This one’s exposure is in Latin America.

2011-02-07

DON'T BUY

71.080

Mark Grammer

Doesn’t expect the Spanish economy will disrupt the dividend. Globally consumers use their cell phones so cash flows won’t be affected very much. Stock itself could be affected and become volatile.

2011-01-17

BUY

67.810

Srikanth Iyer

European play on yield. Likes the payout and the sustainability.

2010-12-30

BUY

68.520

Rick Stuchberry

You will be ok with this one. He chose a different one. These companies are being a bit tarnished here. These companies look a bit interesting here.

2010-12-16

TOP PICK

65.960

Some European assets but the bulk is in Brazil where they just bought the Brazilian wireless assets of Portugal Telecom. Will have a lot of profit growth and dividend growth.

2010-11-29

BUY

69.300

Don Reed

Main telephone service provider for Spain, but growth is going to come from emerging markets. Big player in Latin America with 135 million subscribers. Growth will be in cellular. 7.7% yield.

2010-11-23

TOP PICK

67.050

Have both fixed line and wireless but the wireless mix is going to be more significant going forward. Also completed an acquisition in Brazil that is expected to be accretive of earnings next year. 7.4% dividend.

2010-08-27

BUY

64.650

Unique company because not only does it have a franchise on wireless and wire line in Spain, but have the largest franchise in Latin America, one of the fastest growing areas globally. Yield of 7.6%.

2010-08-26

Comment

61.660

Trying to acquire the Brazilian mobile phone company Vivo from its joint venture partnership but are being blocked by Portuguese shareholders. 8% yield.

2010-07-09

TOP PICK

58.390

(A Top Pick May 8/08. Up 7.27%.) One of the largest telecoms globally. 8.3% dividend yield is expected to go up over the next 5 years. Down 40% year-to-date because it has been tarred and feathered with all the other Spanish names of more than 40% of their revenues are from outside of Europe. Biggest growth is Brazil, their biggest asset on the wireless side.

2010-06-24

BUY

58.390

Great business. Although Spain is having a lot of economic issues, a lot of their growth is in Latin America. Growth is coming from their wireless business. Currently trying to buy out the joint venture in Brazil from Telecom Portugal. Very cheap. Almost a 9% free cash flow yield.

2010-06-24

STRONG BUY

57.840

Spanish telecom company that has fixed line and mobile in Spain but also a great, very large franchise in Latin and South America. 1st quarter was poor in their fixed line but growth is coming on their mobile side. Trading at 5.1 to EBITDA. Free cash flow yield of about 11.9%. 9% dividend yield.

2010-05-19

BUY

57.470

Pulled down by some of the activities in Spain. This is a good time to think about adding. Fantastic dividend yield of 8.75% and looking for significant increases before 2012.

2010-05-06

BUY

66.340

2/5 operating profits are out of Brazil with a yield in excess of 7%. Have wire line (Internet access and IPOD access (?)) across their markets.

2010-04-29

BUY

71.280

(Market Call Minute) Great telecom. Problems with Venezuela. They can cover the dividend no problem. Great growth and well run.

2010-02-18

BUY

75.690

Has owned for years. Telecom is at the top of the list of sectors that lagged behind last year. This is a way of using a northern hemisphere stock to access emerging markets (Brazil). Debt load is not unusually high and being paid down aggressively. Entry price is a decent entry point. It’s a well run company.

2010-01-26

BUY

79.170

Telecommunication companies trade at very low multiples with very high free cash flow yields and a great dividend yields. This one has done a very good job of expanding their franchise in Latin America on the cell phone side. 5.6% yield.

2010-01-18

PAST TOP PICK

84.690

(A Top Pick March 3/09. Up 65.01%.) Face a challenging regulatory environment in Spain but 40% of their business comes from Latin America, Brazil in particular. Expecting dividends to increase by 50% over the next 3-4 years. Not expensive.

2010-01-05

BUY

83.990

(Market Call Minute) Good wireless exposure in Brazil.

2009-12-29

TOP PICK

83.400

One of the biggest wireless providers in Brazil. Started paying dividends in 2002 and continues to increase. Brazilian profits were up 50%. With Olympics coming, per capita income rising and the infrastructure spending it should do very well going forward. Buy on weakness.

2009-11-06

PAST TOP PICK

85.790

(A Top Pick March 3/09. Up 60.91%.) Rebalanced this one because of weighting but continues to be an excellent holding. Looking for significant dividend increases over the next little while.

2009-10-14

PAST TOP PICK

76.120

(A Top Pick March 3/09. Up 38.07%.)

2009-08-25

PAST TOP PICK

66.490

(A Top Pick March 3/09. Up 24.4%.) In addition to the European exposure, he also likes their Latin American exposure, which has been growing very nicely. Increased their dividend 15% and has a current 6% yield.

2009-07-14

PAST TOP PICK

61.110

(A Top Pick March 3/09. Up 10.8%.)

2009-05-20

TOP PICK

59.890

Got smoked in Spain but in Brazil and the rest of the world they are doing very well. Wireless growth in Latin America is up almost 20%. Dividend yield of 6.72%.

2009-05-08

PAST TOP PICK

59.340

(A Top Pick March 17/08. Down 25.5%.) Growth in Brazil has been fantastic and he is still buying.

2009-03-20

TOP PICK

55.130

The incumbent telephone company in Spain. Telecom sector has been pretty reasonable in holding up through recent turmoil. Has operations in Spain and Latin America plus some other businesses in different parts of Europe. Expect them to maintain and grow their 6.75% dividend, which is expected to grow 15% in 2009.

2009-03-03

PAST TOP PICK

57.540

(A Top Pick Dec 4/07. Down 39%.) Sold his holdings. Telephone group is interesting, partly because many of them have yields. Cash flows are very strong and predictable.

2008-12-01

BUY

74.780

Don Reed

Interesting company because most of their business is done outside of Spain. Dominant in fixed line and wireless in Spain but have 115 million subscribers on the wireless side outside of Spain and 25 million inside of Spain.

2008-08-28

BUY

75.320

Si! Buy

2008-08-11

WAIT

76.010

Drummond Brodeur

Credit downturns are hitting certain markets a lot harder than others. Spain has had a tremendous run on the real estate boom and is now seeing the bust on the downside. Have also had some poor numbers. Thinks there will be earnings pressure coming onto it. Wait to see what the earnings look like next week. Cheap.

2008-07-24

DON'T BUY

82.160

Wireless is a space he had invested in heavily in the past. A number of months ago, he exited this sector. There is still very good growth and predictable cash flows but earnings multiples have been compressed because of concerns about margins. Ultimately, this will be a space to go back to.

2008-07-11

TOP PICK

82.500

More money is going into telecom right now and this is the largest Spanish telecom but they've also got wireless throughout Brazil and Latin America. 25% increase in dividend in the last year.

2008-07-04

TOP PICK

85.430

Spanish telecom, also have assets in Latin America. Wants to get its dividend up to 2 euros in the next 5 years, which would imply a yield of 5-6%.

2008-03-17

TOP PICK

103.110

Global wireless communications is another space that has held up remarkably well. This company dominates the phone business in Spain but is also greatly focused in Latin America. Predictable earnings. Not economically sensitive.

2007-12-04

BUY

64.950

Likes what is going on with wireless assets. Latin America side of their business is growing by leaps and bounds. Dividend growth.

2007-06-22

BUY

67.380

If there is a sell off in emerging markets this will get wacked more then others, but this is still not a bad place to be.

2007-05-22

BUY

63.410

Spanish telephone/wireless company. Good Latin America and South America exposure. The premier global telco.

2007-03-01

BUY

65.490

One of the few stocks in the world that the dividend growth is so visible. Broadband penetration in the Spanish market is only around 28%. Its Latin American market is only 10%. Have incurred tremendous costs to get these networks out and are now sitting back and enjoying the cash flows. Company's commitment is to double the dividend by 2010.

2007-01-09

TOP PICK

60.900

The incumbent Telco in Spain and also has assets in South America. In 2005, the Company undertook a transformative acquisition by acquiring 2 companies and financed them by debt. They are now paying down the debt. The dividend is going up. Current yield is 4%.

2006-11-17

PAST TOP PICK

58.950

(A Top Pick Aug 17/06. Up 15.8% plus 4% yield.) Good growth in wireless in Europe and Latin America. Still a buy. Plan to cut their debt in half and increase the dividend twofold over the next 5 years.

2006-11-09

TOP PICK

50.950

Spanish telecom. Yield of about 4%. Have been growing in emerging markets. Free cash flow is greater than their need for capital expenditures. Trading at 5 X cash flow, which is cheap compared to other telecoms.

2006-08-17

TOP PICK

47.950

Probably has the best organic growth of all the global telecom, simply because of the Latin American growth. Landline business is growing at about 8% and the cellular business is growing as well. 4% dividend.

2006-05-25

BUY

54.870