Bullish on Telcos

The table above (click on image for full-screen view) presents the 40 active component stocks among 99 total companies included in my Foreign Telco Services BULLISHares Index. All such companies must have market caps greater than $1 billion US Dollars and derive the majority of their revenues from telco services from outside of the United States [US] and Canada.

The 40 active companies are chosen on a quarterly basis from a rating system which is calculated as follows: (a) trailing 12-month stock price performance + (b) dividend yield + (c) percentage of total market cap represented by each company + (d) percentage of total trailing 12-month net income represented by each company.

The index was last updated on 5/5/08, demonstrating an average dividend yield of 2.5% with favorable performance of the 40 equally weighted stocks of +30.7% as compared to benchmark telecom funds currently available to investors such as Telecom HOLDRs (TTH) (-12.7%), iShares Dow Jones US Telecom (IYZ) (-21.3%), iShares S&P Global Telecom (IXP) (+4.3%), and the Emerging Market Telecom Fund (ETF) (+15%).

The trend from both my index and the benchmark funds demonstrates outperformance for the telco service stocks based outside of the US and Canada, which is the group of companies tracked by Global Telco Services BULLISHares.

Disclosure: none

Comments

[guliamo:]

Nice to see Cellcom high on the list. I am less bullish on Telco's.. they seem to be having a very hard time increasing wallet share.
Internet surfing from the phone is proving a flop and people are talking all they want to, texting all they want to and paying a fixed price. Competition is huge, moving operators easy (since the number migration law)..
Technicals isn't everything.. it shows the past, not future.
Cheers.

2008 Jul 27 08:40 AM

[titans:]

How is the ETF ticker up 15%, when chart shows a continually drop since late 2007 & 1 year chart shows really no gain either ??????????????????????...

2008 Jul 27 11:19 AM

[Mike Havrilla:]

I update the index quarterly with the last update on 5/5/08 - the historical prices for ETF ticker are $20.64 from a year earlier and $23.77 on 5/5/08.

2008 Jul 27 11:27 AM

[lawbroker:]

CEL has inconsistent dividends, paid one of $2.10 in March. Was this a one-time divy?

2008 Aug 13 12:08 PM

[Mike Havrilla:]

Here is info on dividend history over the past year for CEL:

Cellcom Israel Ltd. announced that it has declared a cash dividend in the amount of NIS 2.76 per share, and in the aggregate amount of approximately NIS 270 million (the equivalent of approximately $0.77 per share and approximately $76 million in the aggregate, based on the representative rate of exchange on August 11, 2008; the actual $ amount for dividend paid in $ will be converted from NIS based upon the representative rate of exchange published by the Bank of Israel on September 4, 2008). The dividend will be payable to all of the Company's shareholders of record at the end of the trading day in the NYSE on August 25, 2008. The payment date will be September 8, 2008.

Cellcom Israel Ltd. announced that the Company's Board of Directors declared a cash dividend in the amount of NIS 2.65 per share, and in the aggregate amount of approximately NIS 258 million (the equivalent of approximately $0.77 per share and approximately $75 million in the aggregate, based on the representative rate of exchange on May 13, 2008; The actual $ amount for dividend paid in $ will be converted from NIS based upon the representative rate of exchange published by the Bank of Israel on June 4, 2008). The dividend will be payable to all of the Company's shareholders of record at the end of the trading day in the NYSE on May 27, 2008. The payment date will be June 10, 2008.

Reuters reported that Cellcom Israel Ltd.'s Board declared a cash dividend of ILS7.18 per share ($2.10) or a total of ILS700 million to be paid on April, 14. This includes a dividend for the fourth quarter of ILS1.78 per share and a one-time extraordinary dividend for the year of ILS5.4 per share.

Cellcom Israel Ltd. announced that it has declared a cash dividend in the amount of NIS 2.06 per share, and in the aggregate amount of approximately NIS 201 million, the dividend will be payable to all shareholders of record at the end of the trading day in the NYSE on August 23, 2007. The payment date will be September 6, 2007.

2008 Aug 13 12:25 PM