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Why Telecom Argentina Will Rebound in 2013

By Brian D. Pacampara, CFA – Jan 3, 2013 at 4:30PM

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Market-trouncing returns could be written in this 4-Star.

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 (TEO 0.66%) 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 (AMX -0.27%)

Transportadora de Gas del Sur (TGS -2.75%)

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.

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

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.

Stocks Mentioned

Telecom Argentina Stock Quote
Telecom Argentina
TEO
$4.59 (0.66%) $0.03
America Movil Stock Quote
America Movil
AMX
$18.49 (-0.27%) $0.05
Transportadora de Gas del Sur Stock Quote
Transportadora de Gas del Sur
TGS
$9.18 (-2.75%) $0.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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