Contrarian Thinking On Telecoms
By Yaser Anwar, CSC of Equity Investment Ideas
Question: With gold, emerging markets, commodities, and housing all getting crushed, how could you possibly have made money in stocks during the past month?
Answer: By owning stocks everyone hates. By owning telecoms.Big telecom companies like AT&T were loved 10 years ago. Investors thought broadband investments would make them rich. Those stocks were killed in the tech bear market… and now reside in the “left for dead” bargain bin.
A contributor had this to say:“Everyone hates the big old phone companies, so we can buy them at fire-sale prices and limit our downside risk.”As the prices demonstrate… the downside risk is minimal with big telecoms. The big telecom ETF (TTH) fell only slightly during the big correction… and sits near yearly highs.
http://www.equityinvestmentideas.blogspot.com/
Question: With gold, emerging markets, commodities, and housing all getting crushed, how could you possibly have made money in stocks during the past month?
Answer: By owning stocks everyone hates. By owning telecoms.Big telecom companies like AT&T were loved 10 years ago. Investors thought broadband investments would make them rich. Those stocks were killed in the tech bear market… and now reside in the “left for dead” bargain bin.
A contributor had this to say:“Everyone hates the big old phone companies, so we can buy them at fire-sale prices and limit our downside risk.”As the prices demonstrate… the downside risk is minimal with big telecoms. The big telecom ETF (TTH) fell only slightly during the big correction… and sits near yearly highs.
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 1:09 PM
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