Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5-Star Stocks Poised to Pop: TIM Participacoes

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian mobile telecom company TIM Participacoes (NYSE: TSU  ) has earned a coveted five-star ranking.

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

TIM facts

Headquarters (founded) Rio de Janeiro (1998)
Market Cap $10.7 billion
Industry Wireless telecommunication services
Trailing-12-Month Revenue $9.4 billion
Management CEO Luca Luciani (since 2008)
CFO Claudio Zezza (since 2008)
Return on Equity (average, past 3 years) 13.7%
Cash/Debt $1.2 billion / $2.0 billion
Dividend Yield 2.4%

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

On CAPS, 92% of the 159 members who have rated TIM believe the stock will outperform the S&P 500 going forward. These bulls include ajbakerjr and All-Star kkconway, who is ranked in the top 2% of our community.

A few months ago, ajbakerjr nicely summed up the TIM bull case:

As Brazil continues its own version of the mobile telephony renaissance that we have already experienced in the US, companies in this space that know and serve the local market will flourish. Fundamentally, [TIM] is one of the standouts in this space and its nicely priced to boot.

In fact, TIM currently sports a particularly paltry price-to-cash flow of 3.6. That represents a discount to other foreign telecom plays such as America Movil (NYSE: AMX  ) (6.5), China Mobile (NYSE: CHL  ) (5.5), and Vodafone (Nasdaq: VOD  ) (8.1).

CAPS All-Star kkconway elaborates on the opportunity:

Seen on non-Fool technically oriented, newsletters, but the fundamentals, growth trajectory and political stability of late in Brazil (always a wild card) seem to align this one with the stars -- long enough some decent green CAPs points. I was buying options in real life until I noticed how thin it's traded for a 6 billion dollar telecom. The big boys are not hedging their buys with puts; yet another fantastic sign, I hope.

What do you think about TIM, 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!

Interested in another easy way to track TIM? Add it to your watchlist.

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 Vodafone. The Fool owns shares of China Mobile. 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.

Read/Post Comments (1) | Recommend This Article (0)

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 November 25, 2015, at 2:29 PM, cassandro wrote:

    Why TSU has only two stars inspite of motley fool good opinion? Can somebody explain me?

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1590291, ~/Articles/ArticleHandler.aspx, 10/28/2016 10:24:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,170.26 0.58 0.00%
S&P 500 2,131.76 -1.28 -0.06%
NASD 5,209.98 -5.99 -0.11%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 10:08 AM
TSU $13.81 Up +0.03 +0.22%
TIM Participacoes CAPS Rating: **
AMX $12.69 Up +0.97 +8.28%
America Movil CAPS Rating: ****
CHL $57.08 Down -0.12 -0.21%
China Mobile CAPS Rating: ****
VOD $28.03 Up +0.18 +0.65%
Vodafone CAPS Rating: ****