Recs

6

4-Star Stocks Poised to Pop: China Mobile

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless telecom giant China Mobile (NYSE: CHL  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at China Mobile's business and see what CAPS investors are saying about the stock right now.

China Mobile facts

Headquarters (Founded)

Central, Hong Kong (1997)

Market Cap

$181 billion

Industry

Wireless telecom services

Trailing-12-Month Revenue

$74.9 billion

Management

CEO Yue Li (since 2010)

CFO Xue Taohai (since 2002)

Return on Equity (Average, Past 3 Years)

24.7%

Cash/Debt

$45.1 billion / $5.2 billion

Dividend Yield

3.7%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97.5% of the 3,597 members who have rated China Mobile believe the stock will outperform the S&P 500 going forward. These bulls include goqqq and passivecaller.

Just last month , goqqq reminded Fools that China Mobile "dominates the mobile market in China with a 70% share." Our CAPS member concludes: "Thanks to unrivaled scale efficiency, superior network coverage, and a well-known brand, the carrier is in an enviable position to capitalize on the growth potential in China."

Currently, China Mobile even sports a cheapish forward P/E of 9.4. That represents a discount to other telecom giants like AT&T (NYSE: T  ) (11.9), China Unicom (NYSE: CHU  ) (29.9), and Verizon (NYSE: VZ  ) (13.9).

CAPS member passivecaller expands on the outperform argument:

China Mobile has the most cellular customers in the world with 594.9 million subscribers as of March 2011. ... Smart phones are starting to catch on which will provide increased revenue. A 4G network is almost ready for testing and more and more of the Chinese are getting on the Internet and they're doing it with smart phones not with computers. This is a company with over 40 billion in cash and almost no debt. It pays an almost 4% dividend and has astonishing growth potential for a company its size.

What do you think about China Mobile, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of China Mobile, and The Motley Fool owns shares of it. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:01 PM
CHL $50.99 Down +0.00 +0.00%
China Mobile CAPS Rating: ****
VZ $41.45 Up +0.06 +0.14%
Verizon Communicat… CAPS Rating: ****
T $33.69 Up +0.05 +0.15%
AT&T CAPS Rating: ***
CHU $14.22 Down -0.39 -2.67%
China Unicom Limit… CAPS Rating: ****

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