Steve, Re: Telecoms
I'm watching your sector diversification strategy develop with great
interest. Now then, the facts, mam, just the facts:
ATI 1
AT 5
T 0
AIT 2
BCE -2
BEL 0
BLS 3
GTE 4
LU 0
MCIC -2
NT -1
SBC 0
FON 5
TMX 6
XO 0
USW 1
It interesting that in the three years that I've been devloping these
Model Portfolios, not a single telecom has come on the list. Now I
see why.
But, there were some interesting observations: 1) half, or 8 of the
16 are selling at a 5 yr high PE ratio, 2) only 3 (ATI, TMX, & XO)
were able to double their revenues over the last 5 years, 3) only 1
(ATI) was able to achieve annual, sequential EPS growth, and 4) two
(AIT & FON) have done fairly well on a consistent basis as compared
to the Index.
The Big Boys favored MCIC (14.4, 2.1%) and XO (3.6, 3.0%), but with
MCIC I got to wonder if this isn't just a typical buy the target and
short the acquirer strategy. Actually, the Big Boys had a slight net
outflow on LU. What a bloated whale LU is; obviously no one buying
this one based on any fundamental analysis.
Enjoy
Berney |
