STOCKCHASE

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

Paul Harris, CFA

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

David Burrows

(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

David Burrows

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

David Burrows

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

Gavin Graham

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