Why Telecom Argentina Will Rebound in 2013

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Latin American telecom company Telecom Argentina (NYSE: TEO  ) has earned a respected four-star ranking.

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

Telecom Argentina facts

Headquarters (founded)

Buenos Aires, Argentina (1990)

Market Cap

$2.4 billion

Industry

Integrated telecom services

Trailing-12-Month Revenue

$4.5 billion

Management

CEO Franco Bertone (since 2009)

CFO Adrian Calaza (since 2009)

Return on Equity (average, past 3 years)

32.7%

Cash/Debt

$597.5 million / $37.4 million

Dividend Yield

7.7%

Competitors

American Movil (NYSE: AMX  )

Transportadora de Gas del Sur (NYSE: TGS  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 244 members who have rated Telecom Argentina believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, moepitman, succinctly summed up the Telecom Argentina bull case for our community:

A good value price at around $12, with a solid track record of revenue growth, earnings growth, and a nice dividend. Argentina has one of the highest rates of mobile phone ownership in the world, and Telecom Argentina has proven over time that it can compete successfully.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Telecom Argentina may not be your top choice.

If that's the case, you should check out the latest pick by Motley Fool co-founder David Gardner. He's achieved gains of more than 120% in our Stock Advisor service since it launched in March 2002. Compare that to the S&P 500's return of 29% over that same time frame. David has managed to trounce the market by always being on the lookout for revolutionary stocks and recommending them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 07, 2013, at 11:38 AM, jwdcollins wrote:

    I picked this as a great stock buy,months ago.To my

    dismay,it fell,and I lost money. The problem is not

    the value of the company----it's the policies of the

    government that control it.

    until there is a change in the Nattional government-

    particularly the President--this is very risky.

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