Stock price when the opinion was issued
A hard one to look at. You will see red if you have held it for a while. This is due to their spinout. Your book price is higher due to the fact it does not take into account of the dividend from the spinout. Tends to build up companies and then spins them out. There is growth however. Brexit was the biggest impediment for them. UK based companies now should do pretty well. Good for income.
All European telcos are basically having the same thing that is happening with US telcos. We are in an environment where people are starting to chase growth and we are at the top of the cycle. Companies that produce safe and steady dividends are no longer sexy. However, the problem between Europe and the US is a very different story, and sector rotation doesn’t really apply. Europeans are now starting to grow revenue as well as earnings. They have top line growth which we don’t have in North America. There is also expansion and acquisitions going on. The largest market for this company is Germany. The dividend is safe. If we see more BREXIT noise occurring, buy this on a dip.