Telecom Italia SPA (TI-N)

The tough part about these businesses is that they are heavily capital intensive with a lot of capital expenditures they have to make. The good thing with this one is that they own other assets globally.

Thinks it has gotten ahead of itself. It is a trading story, but prefers Chinese telecoms.

From a macro point of view, Italy is still in recession. Thinks it is the last country of the pegs that is going to remain in recession. Feels there are better ones to be in.

Very good dividend. If cash flow is strong enough then this should do fairly well. Has had a tremendous recovery. It is not a growth stock, but for a dividend stock it is an interesting one. 2.5% dividend.

Italian Telecom. Averaging down depends on the quality of the company. Italy is having a very tough time. He would sell this and go in to others such as China Mobile or Vodaphone.