Originally published on SeekingAlpha.com, February 11, 2016
- Telecom Argentina is a leading telecommunications provider in Argentina.
- Telecom Argentina is undervalued but has a strong competitive position, good economics, a healthy balance sheet and an interesting dividend, providing both capital appreciation and dividend return opportunities.
- Nortel Inversora is a holding company that owns 54.74% of Telecom Argentina. Its preferred shares offer TEO’s capital appreciation potential while enhancing its dividend return.
Telecom Argentina (NYSE:TEO) is a leading telecommunications provider in Argentina. We analyzed Telecom Argentina in depth in an article last year. With economic and financial position essentially unchanged since our analysis and political and macroeconomic conditions improving in Argentina after the November 2015 elections and political shift, we believe Telecom Argentina remains a very interesting value play while yielding 3.04% in dividend return.