Verizon/Vodafone Wireless Deal

Ted

FYI: I like the mobile and wireless space, and hold positions in VZ, VOD, T, CTL, FTR, WIN, AMT, and NZTCY. Most of these stock have better than average yields, and I believe that although the wireless industry has matured, there is still a good deal of growth potential. One way to play this sector is with T. Rowe Price Media & Telecommunications Fund (PRMTX), which stands head and shoulders above the other funds in this sector.
Regards,
Ted
http://online.wsj.com/article/SB10001424127887324432404579048881316725164.html?mod=WSJ_hps_LEFTTopStories

M* Snapshot PRMTX: http://quotes.morningstar.com/fund/prmtx/f?t=prmtx

Kenster1_GlobalValue

What are your thoughts on Telefonica? Too much of a gamble right now for a potential rebound play?

Telefonica has been battered hard. -9.09% 3-year annualized return and -4.93% 5-year annualized returns.

An interesting look at Telefonica: The Good and The Bad

http://seekingalpha.com/article/1539422-telefonica-the-good-and-the-bad

scott

I like SGAPY, BCE, VZ and a few others. I agree with Ted on PRMTX.

The other thing I quite like in terms of media/communications is LMCA (Liberty Media.)

Ted

Reply to @Kenster1_GlobalValue: I'm generally not interested in a stock unless it pays a dividend. Telefonica just started paying a dividend again.
Regards,
Ted

DlphcOracl

For anyone buying individual stocks I would avoid VZ and VOD like the Plague. I have yet to see one of these mega-mergers bring value to either of the companies involved and it usually marks a high point in their rate of stock price appreciation. At best, they become bond proxies and dividend plays.

That said, a "shout out" to Ted for bringing PRMTX to my attention. I have totally missed this fund and it has been a stellar performer over the past decade, in large part due to its very broad definition of what a "media & telecommunications" stock is. A look at the Top 25 holdings of PRMTX shows that its fund managers are perceptive and skilled. FWIW, I agree with Ted --- I believe this sector, in addition to health care (including medical devices, health care delivery, pharma and biotech) will be big winners over the next decade as well.

Thanks, Ted.

Kenster1_GlobalValue

Don't forget too that Robert Gensler played a large role in the long-term performance of that fund but then was tasked to take over the T. Rowe Price Global fund.

Ted

Reply to @DlphcOracl: You make a valid point about VZ/VOD going forward.
Regards,
Ted
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Investor

Reply to @DlphcOracl: This is not a mega-merger. In fact, Verizon is buying back the shares of Verizon Wireless that Vodaphone holds. So, Vodaphone is getting cash and has no say on Verizon in the future. Vodaphone and Verizon is continuing as independent companies.