Is Telefonica Telegraphing Its Next Move?http://www.fool.com/investing/general/2012/09/28/is-telefonica-telegraphing-its-next-move.aspx Rich Duprey
September 28, 2012
With more than 5,400 stocks to choose from, the universe of investment possibilities is enormous. You could get tips over the company water cooler or from Internet discussion boards. A better way might be to look for stocks based on what you already know and own.
Motley Fool CAPS helps you focus your energies by providing you with a personalized Stock of the Day. Using its supercomputer, it looks at stocks currently in your active pick list, stocks picked by highly rated players with lists similar to yours, industries in which you currently have active picks, and targets areas in which you already have an interest.
By pairing up the opinions of some of the top investors in the CAPS community, CAPS provides you with a handful of companies on which to begin your own due diligence and research.
Buy what you know
With Europe in turmoil and Spain facing growing levels of civil unrest, let's see what Telefonica has going for it that might warrant an investment, even if the supercomputer hasn't yet picked it for you. Just remember, as smart as the CAPS algorithm may be, it's still just an algorithm, so be sure to look before you leap on any of its suggestions.
Source: FinViz.com. N/A = not applicable; TEF does not pay a dividend. TTM = trailing 12 months.
Hanging up on growth
Even though Telefonica derives most of its revenue from Latin America (some 42% in 2011), Spain itself accounts for 27% making it the single largest contributing country. Yet, right up there is Brazil. Of the 25.8 million euros it generated in South America and Mexico last year, half of it comes from Brazil.
L'etat c'est moi!
Even in Spain it is the dominant force to reckon with, having 40% of the mobile market there and almost 50% of the Internet and data business.
So even though Spanish banks such as Santander (NYSE: SAN