Recommended Stocks & Mutual Funds
in the News
Below are updates of our recommended stocks
and mutual funds as well as news of pending
spin-offs.
10/12/2007
--- International
Picks Continue Strength: FTE Loses Competitor, Stock Up 54%
In 14 Months
France Telecom (FTE - Hi-Yld,
Int'l,
& Value
Portfolios) lost
a competitor when rival telecom company Iliad failed to
obtain a license to become the fourth 3G mobile operator in
France. High barriers to entry such as this help boost France
Telecom's bottom line. The company controls approximately
48% of France's cellular market and 68% of the local market.
FTE also has significant shares of wireless markets in the
United Kingdom, Poland, Spain, and other European countries.
We are maintaining our "buy" rating
for the company, despite the stock's 54% gain since we recommended
the company less than 14 months ago. Assuming reinvestment
of France Telecom's hefty dividend (4.7% yield), the gain
jumps to 62%.
With the dollar continuing to fall, international
stocks are extending their momentum. Through today, our International
Stock Portfolio (which includes France Telecom) is returning
31.97% per year based on prices mid-way through today's trading.
The two other portfolios recommending France Telecom are our
High-Yield
Value Stock Portfolio (20.47% per year) and our Value
Stock Portfolio (37.24% per year).
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