Friday, August 20, 2010

Telecom picks

I added two telecom stocks to my portfolio: China Mobile (NYSE: CHL) and Vodafone (Nasdaq: VOD). In China Mobile there are three main things that make it attractive to me: 1) first it is a telecom stock (defensive), 2) it is Chinese stock, 3) by any standard ít is doing excellently.

I use Swedish TeliaSonera as benchmark for all telecom sector stocks. Not many can raise to the same level but China Mobile can in terms of ROA/ROE/ROI and margins.

Vodafone is not doing so fine, but it is low on valuation and I am betting on Verizon resuming dividend by 2012. Vodafone owns 45% stake in Verizon.

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