Is Telefonica Undervalued?
Power Hedge submits:
Telefonica (NYSE: TEF) has been mentioned lately by many investors as being an example of throwing the baby out with the bathwater. Telefonica is a former government monopoly and the dominant telephone company in Spain. Due to fears of problems with Spanish debt, the stocks of many Spanish companies have been sold off in droves over the past few months, Telefonica included.Telefonica, however, is far more than just a Spanish phone company. This international powerhouse is the third largest telecommunications provider in the world, behind only Vodafone (NYSE: VOD) and China Mobile (NYSE: CHL). Telefonica only generates 33% of its revenue in Spain. The company generates 40% of its revenues in Latin America and the remaining 27% is generated in various other European countries. In addition to its commanding presence in Latin America, Telefonica owns 8% of China Unicom (NYSE: CHU). This positions it well to capitalize on emerging markets growth.Complete Story »
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