David Driscoll Telefonica S.A. TEF-SM PAST TOP PICK Mar 31, 2011

Largest telecom in Spain but also has exposure in Latin America and South America. Just introduced Internet phone service in Brazil. Yields about 4%. Trading at less than 3X cash flow. Likes the demographics of rising per capita income in South America and Latin America.

(Also trades on the NYST under TEF-N.) Huge player in both Europe and South America. Dividend increase could be from 20%-40% this year, which would put the yield close to 8%. Brazil is going gangbusters in this company have the wireless assets. Also selling Pay TV. Very cheap.