Telefonica (TEF) is cut to Baa2 - barely investment grade - from Baa1 by Moody's. "The company...


Telefonica (TEF) is cut to Baa2 - barely investment grade - from Baa1 by Moody's. "The company does not have the domestic or financial strength, or sufficiently robust access to liquidity, to distance itself" from Spain's difficulties. Shares -27% YTD.

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Comments (15)
  • nicasurfer
    , contributor
    Comments (124) | Send Message
     
    Buy TEF
    20 Jun 2012, 08:35 AM Reply Like
  • AlphaU
    , contributor
    Comments (30) | Send Message
     
    I am long on TEF.
    20 Jun 2012, 09:03 AM Reply Like
  • timetosave
    , contributor
    Comments (36) | Send Message
     
    Another downgrade from the all-seeing, all-knowing credit agencies... Same group that gave mortgage backed securities A ratings. Yep.
    20 Jun 2012, 10:07 AM Reply Like
  • lindyadam
    , contributor
    Comments (7) | Send Message
     
    Am Long TEF but maybe a little nervous?
    20 Jun 2012, 12:53 PM Reply Like
  • Veritas1010
    , contributor
    Comments (2520) | Send Message
     
    Hang-in and hang on. This is a long ride down, but it will right itself. Unfortunately, we'll be getting script next year rather than dividends. This is painful, but it is what it is.

     

    dis.: long TEF.
    20 Jun 2012, 07:23 PM Reply Like
  • egonandre
    , contributor
    Comment (1) | Send Message
     
    I owned ones KPN [Netherlands] and DT [Germany]
    I lost my shirt.
    emandre
    20 Jun 2012, 03:41 PM Reply Like
  • RobberBaron
    , contributor
    Comments (283) | Send Message
     
    I foresee TEF selling some assets. The Spanish economy and bank(loan) rates will starve TEF of the cash needed to make the continuous infrastructure upgrades to remain competitive in wireless. Selling some assets makes more sense than falling behind in infrastructure (assuming wireless is the future in telecoms). VOD, on the other hand, is cash rich after some sales, even with the upcoming purchase of C&WW. They already have an announced partnership to share some wireless networking assets in UK. Project VOD buying TEF holdings elsewhere. (Perhaps full holding, perhaps a share.) Win-Win.

     

    Long: VOD, T
    20 Jun 2012, 08:38 PM Reply Like
  • nicasurfer
    , contributor
    Comments (124) | Send Message
     
    buy TEF sell covered calls and collect the divendend
    21 Jun 2012, 08:28 AM Reply Like
  • AlphaU
    , contributor
    Comments (30) | Send Message
     
    Spain's debt to GDP ratio is the lowest in Europe: 79%, the same as Germany. France's ratio is 89%, Italy 123%, Greece 153%, USA about 60%. Spain has plenty of resources to pay its debts. Spain only has a banking liquidity problem which is being addressed by the EU. The country is going through a confidence crisis and is under speculative attack, just like Italy. It will be a long slow recovery but I am holding on to my European stocks.
    21 Jun 2012, 09:29 AM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1001) | Send Message
     
    All the world's banks must be nationalized!
    Problem solved forever!
    21 Jun 2012, 10:37 AM Reply Like
  • nicasurfer
    , contributor
    Comments (124) | Send Message
     
    the spanish banks are large holders of tef for pension funds and have been liquidating their TEF holdings to raise capital. This cycle is coming to an end BUY TEF
    22 Jun 2012, 08:30 AM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1001) | Send Message
     
    When banks next time receive billions very soon, they will buy (TEF) again!. Don't woorry.
    23 Jun 2012, 09:54 AM Reply Like
  • Veritas1010
    , contributor
    Comments (2520) | Send Message
     
    If this is true, these international banks will be trading and shorting TEF along the way since the dividend will be gone for next year (only script) and maybe beyond...
    23 Jun 2012, 03:11 PM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1001) | Send Message
     
    I hope you've seen the current value, short in that area are not very profitable.
    And if you speculate that a value when go up you will get short, no matter if you go long.
    Is the same when you use your car, if you thing before you drive it ,that you crash, you not use it!.
    But (TEF) is a safe car!.
    24 Jun 2012, 10:34 AM Reply Like
  • Veritas1010
    , contributor
    Comments (2520) | Send Message
     
    I'm long TEF. They will reemerge from the darkness. I already have a significant position in TEF pre-split and then purchases on its way down. I scripted the last distribution in part to lower point of entry cost and YOC.

     

    I believe in Europe, and I believe in our future.
    25 Jun 2012, 03:52 PM Reply Like
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