The market in the United States is very oversold. The market in Europe is being hammered, and Japan has some sectors that look interesting.
FTE – We would agree that the analysts over-reaction to Illiad’s entry in the French market for phones has been a bit extreme. The economy is winging France Telecom (FT), and competition is being felt, but the company has a giant footprint in Europe and Africa which doesn’t even blink at Illiad’s “threat” to their wireless service in the mother country. That, and the French government still has a stake in FT. We’ve been net buyers on its way down in the curve, a little here and there, to lock in good returns. For now the dividend, with a projected yield of 14.89% appears to be in good shape. Anything under $14.50 we like just fine. BUY.
DCM – We bought some NTT DoCoMo back when the Fukishima plant melted down and Japanese stocks were affected. We like the Godzilla of Japanese phone companies that holds 45% market share. They’ve been cost cutting and turning towards volume sales of smart phones as a way to create more revenue where older phones didn’t have it: In the data plans. With a projected yield on the dividend of about 4.3%, we like it enough to buy a bit of it and keep it around to offset the American stocks being sold. BUY.
If there is a correction, we’ll be looking at buying GM in the middle of it. It’s great stock, debt reduced, lean and mean, with the government exiting its share, and it’s already selling for about half of its fair market value. We think there might be some further discount with the correction. BUY PENDING.
The Genius Guide to Value Investing 