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Telecom Argentina Provides 30% Return For ValuEngine Newsletter

|Includes: Telecom Argentina S.A. (TEO)

VALUATION WARNING: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks assigned a valuation now make up 75% of our universe and 42% of the stocks assigned a valuation are calculated to be overvalued by 20% or more. 15 of 16 sectors are calculated to be overvalued--14 of them by double digits.

Pick Up the Phone
--Telecom Argentina Provides 30% Return for VE View

TELECOM ARGENTINA (NYSE:TEO) holds a license to provide basic telephone service and fixes telecommunications links in the northern region of the Argentine Republic. The Company contributes to the country?s economic and social development by means of incorporating the latest technological advances achieved to-date in the field of telecommunications world-wide.

TELECOM ARGENTINA currently leads our long-only ValuEngine View portfolio newsletter. When originally selected for the View this month, the stock was at $15.23/share. As of yesterday's close, the stock was at $19.91/share for a gain in excess of 30%.

ValuEngine continues its STRONG BUY recommendation on TELECOM ARGENTINA for 2013-08-19. Based on the information we have gathered and our resulting research, we feel that TELECOM ARGENTINA has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Momentum.

Below is today's data on TEO:

 

 

ValuEngine Forecast

   
 

Target Price*

Expected Return

1-Month

20.21

1.51%

3-Month

21.99

10.47%

6-Month

22.89

14.96%

1-Year

23.51

18.09%

2-Year

29.48

48.09%

3-Year

34.08

71.17%

 

       

Valuation

n/a

Valuation Rank

80

1-M Forecast Return

1.51%

1-M Forecast Return Rank

99

12-M Return

62.53%

Momentum Rank

89

Sharpe Ratio

0.07

Sharpe Ratio Rank

63

5-Y Avg Annual Return

3.78%

5-Y Avg Annual Rtn Rank

67

Volatility

56.92%

Volatility Rank

44

Expected EPS Growth

1.22%

EPS Growth Rank

22

Market Cap (billions)

3.92

Size Rank

84

Trailing P/E Ratio

6.77

Trailing P/E Rank

98

Forward P/E Ratio

6.69

Forward P/E Ratio Rank

96

PEG Ratio

5.56

PEG Ratio Rank

5

Price/Sales

0.81

Price/Sales Rank

69

Market/Book

2.03

Market/Book Rank

48

Beta

1.43

Beta Rank

34

Alpha

0

Alpha Rank

59

Market Overview
 

 

Summary of VE Stock Universe

 

Stocks Undervalued

25.02%

Stocks Overvalued

74.98%

Stocks Undervalued by 20%

9.98%

Stocks Overvalued by 20%

41.96%

Sector Overview

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Aerospace

-2.11%

-0.51%

25.70%

21.80% overvalued

34.28%

17.5

Auto-Tires-Trucks

-0.54%

1.71%

38.44%

28.11% overvalued

43.12%

20.48

Basic Materials

-1.26%

2.71%

2.57%

3.42% undervalued

-21.42%

19.97

Business Services

-0.60%

-1.66%

69.14%

19.55% overvalued

24.01%

23.3

Computer and Technology

-0.93%

-0.93%

25.99%

22.01% overvalued

23.22%

29.75

Construction

-0.84%

-2.45%

25.84%

16.46% overvalued

31.30%

24.49

Consumer Discretionary

-0.67%

-0.49%

28.32%

23.46% overvalued

27.15%

24.32

Consumer Staples

-0.61%

-2.18%

14.42%

17.73% overvalued

17.97%

21.5

Finance

-1.04%

-1.92%

22.31%

18.70% overvalued

15.03%

17.49

Industrial Products

-0.59%

1.23%

32.70%

20.17% overvalued

29.38%

21.5

Medical

-0.39%

0.14%

194.76%

19.17% overvalued

21.94%

26.29

Multi-Sector Conglomerates

-1.33%

-0.20%

5.95%

25.14% overvalued

13.39%

17.3

Oils-Energy

-1.37%

-3.31%

20.05%

5.77% overvalued

2.78%

26.51

Retail-Wholesale

-0.58%

-3.29%

28.87%

23.91% overvalued

34.93%

23.3

Transportation

-0.63%

-1.87%

18.28%

19.81% overvalued

24.84%

19.13

Utilities

-1.33%

-1.42%

11.52%

9.18% overvalued

8.55%

18.83

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.