10 Best Telecom Stocks For 2015


March 11, 2014: Markets opened mixed on Tuesday and turned sharply lower in mid-morning trading as copper prices tumbled below $3 a pound, a level not seen since mid-2010. Because copper is often viewed as a bellwether for the global economy, price swings in the red metal can affect equity prices. In the final minutes of trading the DJIA was down 0.47%, the S&P 500 was down 0.62%, and the Nasdaq Composite was down 0.76%.

Today’s big gainer among the Dow stocks was McDonald’s Corp. (NYSE: MCD). The company’s CFO indicated that the fast-food giant may seek more ways to cut costs and even borrow cash to boost returns to investors. The company’s shares traded up 3.53% at $98.56 in a 52-week range of $92.22 to $103.70 just ahead of the closing bell. Volume is on track to be more than 3-times higher than the daily average of nearly 5 million shares traded.


The most heavily traded Nasdaq stocks today are Plug Power Inc. (NASDAQ: PLUG) and FuelCell Energy Inc. (NASDAQ: FCEL). The difference today is that the stock prices are tumbling, with Plug Power down 38.89% at $6.30 in a 52-week range of $0.15 to $11.70 (a new 52-week high today). The company’s stock is worth $0.50 a share according to an analyst at Citron Research, who recently had some very harsh things to say about 3D Systems Inc. (NYSE: DDD) as well. Plug Power’s share volume was nearly 8-times the daily average of around 31 million shares traded.

10 Best Telecom Stocks For 2015: Telecom Italia SpA (TIT)


Telecom Italia SpA is an Italy-based company engaged in the communications sector. It operates in the fixed and mobile national and international telecommunications sector. Its activities are divided into five business units. The Domestic unit provides telephone and data services on fixed line and mobile networks for retail voice customers and wholesale operators, as well as develop fiber optic networks. The Brazil unit offers mobile services using Universal Mobile Telecommunications System (UMTS) and Global System for Mobile Communications (GSM) technologies. The Argentina unit operates in fixed telecommunications through Telecom Argentina and in mobile telecommunications through Telecom Personal, and in Paraguay it operates in mobile telecommunications through Nucleo. The Media unit produces of multimedia music platforms, satellite channels and television broadcasting platforms. The Olivetti unit operates in the sector of office products and services for Information Technol ogy. Advisors’ Opinion:

  • [By Zahra Hankir]

    Brazil’s Ibovespa extended its weekly decline to 3.3 percent. Mobile carrier Tim Participacoes SA (TIMP3) sank after parent Telecom Italia SpA (TIT)’s chief executive officer said its Brazilian assets are strategic, damping speculation the local unit will be sold.

  • [By Sarah Jones]

    Telecom Italia SpA (TIT) increased 6.3 percent to 61.4 euro cents. The Italian phone company that’s exploring a separation of its fixed-line assets is considering a sale of an initial 30 percent stake in the new company to state lender Cassa Depositi e Prestiti, two people familiar with the matter said.

  • [By Jonathan Morgan]

    Telecom Italia SpA (TIT) jumped 6.2 percent to 65.6 euro cents. The phone company that was stripped of its investment-grade rating is seeking at least 9 billion euros for its controlling stake in Brazilian wireless carrier Tim Participacoes SA (TIMP3), according to a person with direct knowledge of the matter.

  • [By Sofia Horta e Costa]

    Telecom Italia SpA (TIT) lost 1.8 percent as Standard & Poor’s said it may downgrade the phone company’s debt to non-investment grade. TGS Nopec Geophysical Co. (TGS) tumbled the most in two years after reducing its revenue forecast. Celesio AG jumped to a three-year high on a report that McKesson Corp. may buy the German drug distributor.

10 Best Telecom Stocks For 2015: Lumos Networks Corp (LMOS)


Lumos Networks Corp. is a fiber-based service provider in the Mid-Atlantic region. The Company provides data, broadband, voice and Internet protocol (IP) services over fiber optic network. The Company offers a range of data and voice products supported by approximately 5,800 fiber-route miles in Virginia, West Virginia, and portions of Pennsylvania, Maryland, Ohio and Kentucky. Its products and services include metro Ethernet, IP services, business advantage bundle, managed router service, broadband, voice services and Web hosting. On October 14, 2011, NTELOS Holdings Corp. announced a distribution date of October 31, 2011, for the spin-off of Lumos Networks Corp.


The Company’s broadband services include Business DSL, Dedicated Business Service, Managed Router Services, Business Broadband XL, Business PC Services and Web Hosting. Its IP services include Integrated Access, IP Trunking, IP Centrex and IP Phones. Its voice service include Business Voice, Busin ess Advantage Bundle, nTouch, Intelligent Messaging, Simultaneous Ring, Conference Calling and Long Distance. Its data services include Metro Ethernet and Quality of Service. Lumos Networks Business DSL provides up to six megabits per second downstream and one megabit per second upstream. Its managed router support service equipment includes staging, installation, configuration, and maintenance while support provides around-the-clock monitoring, management and trouble resolution and direct access to networking experts. Its Business Broadband XL offers a selection of high download speeds. Lumos Networks’ Integrated Access solution can integrate local voice, long distance, voicemail, and broadband Internet access. Lumos Networks nTouch brings voicemail linking IP Centrex and nTelos Wireless phone.


Advisors’ Opinion:

  • [By Jake L’Ecuyer]

    Top losers in the sector included NQ Mobile (NYSE: NQ), off 5.8 percent, and Lumos Networks (NASDAQ: LMOS), down 2.9 percent.

    Top Headline
    Citigroup (NYSE: C) reported better-than-expected first-quarter results. Citigroup’s quarterly profit surged to $3.94 billion, versus a year-ago profit of $3.81 billion. On a per-share basis, it earned $1.23. Excluding one-time items, its earnings rose to $1.30 versus $1.29. Its revenue declined to $20.12 billion. However, analysts were projecting earnings of $1.14 per share on revenue of $19.37 billion.

  • [By Jake L’Ecuyer]

    Top losers in the sector included NQ Mobile (NYSE: NQ), off 5.8 percent, and Lumos Networks (NASDAQ: LMOS), down 2.9 percent.

    Top Headline
    Citigroup (NYSE: C) reported better-than-expected first-quarter results. Citigroup’s quarterly profit surged to $3.94 billion, versus a year-ago profit of $3.81 billion. On a per-share basis, it earned $1.23. Excluding one-time items, its earnings rose to $1.30 versus $1.29. Its revenue declined to $20.12 billion. However, analysts were projecting earnings of $1.14 per share on revenue of $19.37 billion.

  • [By Lee Jackson]

    Lumos Networks Corp. (NASDAQ: LMOS) is a leading provider of fiber-based bandwidth infrastructure and IP services in key mid-Atlantic markets. It announced last month it had launched its cloud-based hosted call center solution, which provides best-in-class automated call distribution, integrated voice response and call reporting to help organizations manage call volumes more effectively and efficiently. The service operates over Lumos’s carrier-grade, premium optical network, which provides high-speed, resilient access to the call-center cloud service. The consensus price target for the stock is $20.50. Investors are paid a reasonable 2.7% dividend. Lumos closed Thursday at $20.77.

10 Best Telecom Stocks For 2015: Eutelsat Communications SA (ETL)


Eutelsat Communications SA is a France-based holding company that provides fixed satellite services. It provides four types of services, including broadcast services, such as direct-to-home and professional broadcasting; broadband services, comprising broadband Internet access; telecoms and data services to ensure permanent communications links from all points of the globe, establish or restore communications in an emergency and multicast content; as well as mobile and maritime communications, such as fleet management and on- and off-shore broadband maritime communications. It operates a fleet of satellites covering Europe, the Middle East, North and sub-Saharan Africa, as well as parts of Asia and the Americas. In January 2014, it acquired Satelites Mexicanos, S.A. de C.V. and together with SES SA have completed the sale to EchoStar Corp. of Solaris Mobile Ltd. Advisors’ Opinion:

  • [By Sofia Horta e Costa]

    Eutelsat Communications SA (ETL) declined 6.2 percent to 21.02 euros after predicting sales will grow by more than 2.5 percent for the year 2013 to 2014. The company, which operates 31 satellites, forecast growth of more than 5 percent for the following two years through June 2016. JPMorgan Chase & Co. cut its price target for the stock to 24 euros from 33 euros, saying analysts’ will probably reduce their estimates following the company’s revised guidance.

10 Best Telecom Stocks For 2015: BCE Inc. (BCE)

BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada. The company offers local and long distance telephone services under the Bell Home Phone brand; direct-to-home satellite television (TV) services under the Bell TV name; Internet protocol TV services under the Bell Fibe TV brand; and personal video recorders and online access services. It also provides data services, including Internet access services under the Bell Internet name; Internet protocol based services; and information and communications technology solutions. In addition, the company engages in the rental, sale, and maintenance of business terminal equipment; sale of TV set-top boxes; and provision of network installation and maintenance services for third parties. Further, it offers wireless voice and data communications products and services, such as call display and voicemail, e-mail, Web browsing, social networking, text, picture and video messagi ng, music downloads, ring tunes, ringtones, games and applications, video streaming, live TV, mobile Internet, roaming, and global positioning system navigation services under the Bell and Virgin Mobile brands. Additionally, the company provides media services comprising TV programming services to broadcast distributors. It operates approximately 28 conventional over-the-air stations and 30 English and French-language specialty TV channels; 33 FM and AM radio stations and their related Websites; and Theloop.ca Website. As of December 31, 2012, the company served approximately 2.1 million high-speed Internet access customers through fiber-optic, digital subscriber line, or wireless broadband technology; and 7.7 million wireless customers. BCE Inc. offers its services through call centre representatives, independent dealer stores, and value-added resellers, as well as through its Websites. The company was founded in 1880 and is headquartered in Verdun, Canada.


Advisors’ Opinion:

  • [By Gerrit De Vynck]

    Nadir Mohamed has been overshadowed for much of his tenure as head of Rogers Communications Inc. (RCI/B) by the dealmaking of his main rival, George Cope at BCE Inc. (BCE)

  • [By Jonathan Yates]

    The economy is also expected to recover quickly from the storm’s devastation, making Philippine Long Distance Telephone Company (NYSE: PHI) more attractive to long-term investors than other communications firms such as BCE (NYSE: BCE), AT&T (NYSE: T) and Verizon Communications (NYSE: VZ).

10 Best Telecom Stocks For 2015: Oi SA (OIBR)


Oi S.A., formerly Brasil Telecom S.A., incorporated on November 27, 1963, is a telecommunication service provider in Region II in Brazil. The Company offers a range of integrated telecommunication services that includes fixed-line and mobile telecommunication services, data transmission services (including broadband access services), Internet service provider (ISP) services and other services, for residential customers, small, medium and large companies, and governmental agencies. The Company provides services, which include Fixed-Line Telecommunications Services and Data Transmission Services, Mobile Telecommunications Services and other services.


Local Fixed-Line Services

As of December 31, 2010, the Company had approximately 7.2 million local fixed-line customers in Region II. Local fixed-line services include installation, monthly subscription, metered services, collect calls and supplemental local services. Metered services include local call s that originate and terminate within a single local area. ANATEL has divided Region II into 1,772 local areas. Local fixed-line services also include in-dialing services (direct transmission of external calls to extensions) for corporate clients. For corporate clients in need of lines, the Company offers digital trunk services, which optimize and increase the speed of the customer’s telephone system.


Long-Distance Services

The long distance services include fixed line-to-fixed line and mobile long distance services. It provides domestic long-distance services for calls originating from Region II through interconnection agreements, mainly with Telemar in Region I and Telecomunicavoes de Sao Paulo S.A. (Telesp), in Region III permit the Company to interconnect directly with their local fixed-line networks, and through its network facilities in Sao Paulo, Rio de Janeiro and Belo Horizonte. It provides international long-distance services originatin g from Region II through agreements to interconnect its netw! ork with those of the main telecommunication service providers worldwide. It provides mobile long-distance services originating from Region II through interconnection agreements, with Telemar in Region I, Telesp in Region III, and each of the principal mobile services providers operating in Brazil that permit it to interconnect directly with their local fixed-line and mobile networks. It provides international long-distance services originating or terminating on its customer’s mobile handsets through agreements to interconnect its network with those of the main telecommunication service providers worldwide.


Mobile Telecommunication Services

As of December 31, 2010, the Company had approximately 7.8 million subscribers located in 1,281 municipalities in Region II. As of December 31, 2010, 87.5% of the Company’s customers subscribed to pre-paid plans and 12.5% subscribed to post-paid plans. The Company markets Oi Ligador subscriptions to its pre-p aid customers, which allow these customers to receive bonus minutes with each purchase of additional credits. It charges a nominal subscription fee to enroll a customer in the Oi Ligador program and provide bonus minutes to these customers that may be used for local calls to its fixed-line or mobile subscribers, long-distance calls to its fixed-line subscribers, and sending Short Message Service (SMS, messages to mobile subscribers of any Brazilian mobile service provider.


The Company has roaming agreements with TNL PCS S.A., a wholly owned subsidiary of Telemar which provides mobile services and which it refers to as Oi, Companhia de Telecomunicacoes do Brasil Central (CTBC), and Sercomtel S.A. Telecomunicacoes (Sercomtel), providing its customers with automatic access to roaming services when traveling outside of Region II in areas of Brazil where mobile telecommunication services are available on the GSM standard. As of December 31, 2010, it had launched thir d generation (3G) services in a total of 84 municipalities, ! including! the nine state capitals in Region II and the Federal District. As of December 31, 2010, it had approximately 175,200 3G mobile broadband customers.


Data Transmission Services

The Company provides Internet access services using ADSL technology, which it refers as broadband services, to residential customers and businesses in the primary cities in Region II under the brand name Oi Velox. As of December 31, 2010, the Company offered broadband services in 1,810 municipalities in Region II and it had 1.9 million ADSL customers. Its network supports ADSL2+, VDSL2 and FTTx technologies. ADSL2+ is a data communications technology that allows data transmission at speeds of up to 24 megabits per second downstream and 1 megabits per second upstream. ADSL2+ permits offer a range of services than ADSL, including Internet protocol television (IPTV). As of December 31, 2010, approximately 50% of its fixed-line network had been updated to support ADSL2+. Very-high -bitrate digital subscriber line (VDSL2), is a DSL technology providing faster data transmission, up to 100 megabits per second upstream (downstream and upstream). Fiber to the x (FTTx), is a broadband network architecture that uses optical fiber to replace all or part of the usual metal local loop used for last mile telecommunications.


The Company provides a range of data transmission services through various technologies and means of access. Its commercial data transmission services include Industrial Exploitation of Dedicated Lines (Exploracao Industrial de Linha Dedicada (EILD)), under which it leases trunk lines to other telecommunication services providers, primarily mobile services providers, which use these trunk lines to link their radio base stations to their switching centers; Dedicated Line Services (Servicos de Linhas Dedicadas (SLD)), under which it leases dedicated lines to other telecommunication services providers, Internet service providers (IS Ps) and corporate customers for use in private networks that! link dif! ferent corporate Websites; Internet Protocol (IP) services, which consist of dedicated private lines and dial-up Internet access, which it provides to the ISPs in Brazil, as well as Virtual Private Network (VPN), services that enable its customers to operate private Intranet and extranet networks, and frame relay services, which the Company provides to its corporate customers to allow them to transmit data using protocols based on direct use of its transmission lines, enabling the creation of VPNs.


The Company provides these data transmission services using its service network platform in Region II and its nationwide fiber optic cable network and microwave links. In addition, it provides services at the six cyber data centers located in Brasilia, Sao Paulo, Curitiba, Porto Alegre and Fortaleza. It provides hosting, collocation and information technology (IT) outsourcing at these centers, permitting its customers to outsource their IT structures to it or to use these centers to provide backup for their IT systems. It also owns and operates a submarine fiber optic network, which connects Brazil with the United States, Bermuda, Venezuela and Colombia. Through this network, it offers international data transportation services, primarily leased lines to other telecommunication services providers.


Network Usage Services (Interconnection Service)

The Company is authorized to charge for the use of its local fixed-line network on a per-minute basis for all calls terminated on its local fixed-line network in Region II that originate on the networks of other local fixed-line, mobile and long-distance service providers, and all long-distance calls originated on its local fixed-line network in Region II that are carried by other long-distance service providers. In addition, the Company charges network usage fees to long-distance service providers and operators of trunking services that connect switching stations to it s local fixed-line networks.


Traffic Transporta! tion Serv! ices

The Company offers a long-distance usage service, called national transportation, under which it provides discounts to its long-distance network usage fees based on the volume of traffic and geographic distribution of calls generated by a long-distance or mobile services provider. The Company also offers international telecommunication service providers the option to terminate their Brazilian inbound traffic through its network, as an alternative to Embratel and Intelig Telecomunicacoes Ltda. (Intelig). The Company charges international telecommunication service providers a per-minute rate, based on whether a call terminates on a fixed-line or mobile telephone and the location of the local area in which the call terminates.


Public Telephone Services

The Company owns and operates public telephones throughout Region II. As of December 31, 2010, the Company had approximately 266,100 public telephones in service, which are operated by pre-paid cards.

Value-Added Services

Value-added services include voice, text and data applications, including voicemail, caller identification (ID), and other services, such as personalization (video downloads, games, ring tones and wallpaper), short message service (SMS)subscription services (horoscope, soccer teams and love match), chat, mobile television, location-based services and applications (mobile banking, mobile search, email and instant messaging). The Company also provides advanced voice services to its corporate customers, mainly 0800 (toll free) services, as well as voice portals where customers can participate in real-time chats and other interactive voice services. The Company also operates an Internet portal under the brand name iG.


The Company competes with Empresa Brasileira de Telecomunicacoes, GVT S.A., Vivo Participacoes S.A., Telecom Americas Group, TIM Participacoes S.A., Telesp and Intelig.

Advisors’ Opinion:

  • [By Roberto Pedone]

     

    Oi (OIBR) provides integrated telecommunication services for residential customers, companies and governmental agencies in Brazil. This stock closed up 2.5% to 85 cents per share in Thursday’s trading session.

     

    Thursday’s Range: $0.82-$0.86

    52-Week Range: $0.76-$2.34


    Thursday’s Volume: 22.83 million

    Three-Month Average Volume: 14.72 million

     

    From a technical perspective, OIBR jumped modestly higher here right above some near-term support at 80 cents per share with heavy upside volume. This stock has been downtrending badly for the last five months, with shares sliding lower from its high of $1.97 to its recent 52-week low of 76 cents per share. During that downtrend, shares of OBIR have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of OIBR now look ready to rebound and potentially trigger a near-term breakout trade. That trade will hit if OIBR manages to take out Thursday’s intraday high of 86 cents to more near-term overhead resistance at 90 cents per share with high volume.


     

    Traders should now look for long-biased trades in OIBR as long as it’s trending above some key near-term support levels at 80 cents to 76 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 14.72 million shares. If that breakout triggers soon, then OIBR will set up to re-test or possibly take out its next major overhead resistance levels at $1.02 to $1.08 a share. Any high-volume move above those levels will then give OIBR a chance to tag its 50-day moving average of $1.18 to more resistance at $1.27.


     

  • [By alicet236]

    Oi SA (OIBR) Reached the Five-Year Low of $1.63

    The prices of Oi SA (OIBR) shares have declined to close to the five-year low of $1.63, which is 87.6% off the five-year high of $11.48. Oi SA is owned by three Gurus we are tracking. Among them, zero have added to their positions during the past quarter. 3 reduced their positions. Oi SA is a telecommunication service providing company in Brazil. Oi Sa has a market cap of $2.67 billion; its shares were traded at around $1.63 with a P/E ratio of 4.50 and P/S ratio of 0.14. The dividend yield of Oi Sa stocks is 23.36%. Oi Sa had an annual average earnings growth of 10.00% over the past 10 years.

  • [By Roberto Pedone]

    Oi (OIBR), through its subsidiaries, provides integrated telecommunication services for residential customers, companies and governmental agencies in Brazil. This stock closed up 8.6 % to $1.89 in Thursday’s trading session.

    Thursday’s Range: $1.73-$1.91

    52-Week Range: $1.44-$4.69

    Thursday’s Volume: 5.48 million

    Three-Month Average Volume: 3.91 million

    From a technical perspective, OIBR bounced sharply higher here back above its 50-day moving average of $1.83 with heavy upside volume. This move is quickly pushing shares of OIBR within range of triggering a near-term breakout trade. That trade will hit if OIBR manages to take out some near-term overhead resistance levels at $1.94 to $2.29 with high volume.


    Traders should now look for long-biased trades in OIBR as long as it’s trending above its 50-day at $1.83 or above more key near-term support at $1.72 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.91 million shares. If that breakout triggers soon, then OIBR will set up to re-test or possibly take out its next major overhead resistance levels at $2.44 to its 200-day at $3.06.

10 Best Telecom Stocks For 2015: CenturyLink Inc.(CTL)

CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.


Advisors’ Opinion:

  • [By WWW.DAILYFINANCE.COM]

    Corbis Providing landline connectivity is a fading business, with more and more folks saving money by disconnecting their home phone plans, relying primarily on smartphones. It’s a grim trend that would make this a scary area for shareholders, but good luck trying to tell income-chasing investors to stay away. Despite their dubious growth prospects, Frontier Communications (FTR), CenturyLink (CTL) and Windstream (WIN) have been attracting investors based of the strength of their generous quarterly distributions. Frontier and Windstream — and to a lesser extent CenturyLink — have tried to go where the big boys won’t. They concentrate on smaller markets where traditional phone services are still in demand, and they don’t have to compete as hard with the titans of telco. It’s an interesting strategy. It has long-term flaws, but the three stocks are still magnetic to investors that put up with the shortcomings in exchange for fat dividend checks every three months. Yield Signs How meaty are the disbursements here? CenturyLink yields 5.9 percent, and it’s at the low end of the niche. Windstream is the most generous payer with a hefty 9.9 percent payout. Frontier straddles the two with its 7 percent yield. All three reported quarterly results this week, giving the market some valuable insight on the sustainability of their popular distributions. It’s important to remember that these three companies aren’t merely selling landlines. You don’t stick around if you’re only selling buggy whips, Beanie Babies and Milli Vanillii CDs. Frontier, CenturyLink and Windstream are trying to offset the folks canceling their home phone lines and millennials who have no intention of ever having them by selling more relevant broadband connectivity. They also offer businesses a growing array of corporate communication services. For the most part, these efforts haven’t been enough to grow the overall business. Frontier kicked off the three days of earnings reports on Tuesday, che

  • [By Ben Levisohn]

    CenturyLink (CTL) has risen 2.9% to $39.90 after the telecom company reported Street-beating earnings and offering guidance that was in line with analyst forecasts.

  • [By Dimitra DeFotis]

    One of the day’s biggest movers was Windstream Holdings (WIN), which surged more than 20% before settling up 12% Tuesday after the high-yielding telecom company said it would spin off assets into a real estate investment trust (covered on our income blog). The REIT news carried other telecom names higher:  local phone companies CenturyLink (CTL) and Frontier Communications (FTR), shot up 5.8% and 14.3% respectively. And telecom giants got a lift too: Verizon Communications (VZ) rose 0.76%, while AT&T (T) climbed 2.6%.  Telecom exchange-traded funds also rallied on the REIT news.

10 Best Telecom Stocks For 2015: Harris Corporation (HRS)


Harris Corporation, together with its subsidiaries, operates as a communications and information technology company that serves government and commercial markets worldwide. It operates in three segments: RF Communications, Government Communications Systems, and Broadcast Communications. The RF Communications segment designs, develops, and manufactures secure radio communications products and systems for manpack, handheld, soldier-worn, vehicular, strategic fixed-site, and shipboard applications that operate in various radio frequency bands. It also offers products and solutions ranging from wireless network infrastructure solutions to portable and mobile single-band and multiband radios, and public safety-grade broadband video and data solutions for the public safety, federal, utility, commercial, and transportation markets. The Government Communications Systems segment develops, supplies, and integrates communications and information processing products, systems, and netw orks for aerospace, terrestrial, and maritime applications supporting department of defense missions. This segment also provides mission-critical communications and information processing systems for the U.S. civilian Federal market, as well as offers IT transformation, managed, and information assurance solutions. The Broadcast Communications segment provides workflow, infrastructure, and networking solutions that enable media companies to streamline workflow from production through transmission; media solutions to manage digital media workflow through software solutions for advertising, media management, digital signage, broadband, digital asset management, and play-out automation; and transmission systems for delivery of media over wireless broadcast terrestrial networks. The company also offers healthcare IT solutions, IT compliance solutions, and mission-critical managed satellite communications services. Harris Corporation was founded in 1895 and is based in Melbourne , Florida.


Advisors’ Opinion:

  • [By Rich Smith]

    The JSOW is a Raytheon-designed 1000-lb. “glide bomb.” Dropped from a fighter at high altitude, it can travel as far as 78 miles to strike a target, guided en route by GPS signals.

    Harris Corp (NYSE: HRS  ) was awarded a modification to a firm-fixed-price contract requiring it to supply two counter communications system (CCS) Block 10 increment 1 system upgrades by July 25, 2014.

    CCS is a land-based system designed by Northrop Grumman, the purpose of which is to jam an enemy’s satellite communications.

  • [By Rich Smith]

    Media reports say that the average time needed to process a claim for VA benefits has grown to 272 days. But now, the agency says it’s finally going to do something about this. On Tuesday, communications contractor Harris (NYSE: HRS  ) announced that it has won a four-year, $37 million contract to try to bring the Veterans Benefits Administration’s (VBA) Enterprise Data Warehouse, the primary source for veterans’ benefits data and information, into the 21st century. 

  • [By Rich Smith]

    The Department of Defense ended the week with a bang (if you’ll pardon the expression) Friday. Across a field of 26 contracts awarded, the Pentagon laid out plans to spend nearly $2.5 billion in total. A few of the publicly traded companies winning awards included:

10 Best Telecom Stocks For 2015: Iliad SA (ILIAF.PK)


Iliad SA is a France-based holding company active in the integrated telecommunications sector. The Company provides Internet access services, hosting services and others. Iliad SA is also focused on fixed-line telephony services and the provision of wireless fidelity (WiFi) cards, among several others. In addition, Iliad SA sells via Internet a range of insurance policies. As of December 31, 2012, the Company had a number of subsidiaries, which include Free SAS, Centrapel SAS, Freebox SAS, Telecom Academy SARL, Free Frequences SAS, Iliad 1 SAS, Iliad 2 SAS, Protelco SAS, IFW SAS, IRE SAS, Management Centre De Relation Abonne (MCRA), F Distribution SAS, and Centrapel SAS, among others. Its Fixe subsidiary is a landline business-provider of broadband Internet services. As of year-end 2012, the Company was active as a operator in more than 35 countries. Advisors’ Opinion:

  • [By Mike Arnold]

    I normally don’t look at charts much, but comparing Orange to its competitors in the French telecommunications market is quite fascinating. As one can see, incumbents Bouygues (BOUYF.PK) and Vivendi (VIVHY.PK) (owner of SFR) saw similar price declines. The market, on the other hand, rapidly bid up the price of new entrant Iliad SA (ILIAF.PK), as a result of forecasts for Iliad to capture significant mobile market share (which it did, around 10%). The wide divergence in price relative to changes in underlying value favor going long the incumbents, including Orange. Because this time it’s different.

10 Best Telecom Stocks For 2015: Koninklijke KPN NV (KPN)


Koninklijke KPN NV (KPN) is a Netherlands-based telecommunications and information and communication technology (ICT) service provider. It is divided in two business areas: the Netherlands and Mobile International. The Netherlands includes segments: Mobile Consumer, which offers voice, text and data services, and mobile wholesale; Consumer Residential, providing fixed line services; Business, responsible for wireline and wireless voice and Internet, Cloud and integrated packages for corporate clients; NETCO, which offers wireless, copper and fiber network infrastructure and services for retail and wholesale customers; and Corporate Network, which provides solutions for workspace management, connectivity, information security and data centers, cloud-based and traditional software services and consulting. Mobile International consists of segments such as Germany, Belgium, Rest of the world; and iBasis, providing wholesale voice services and terminating of international calls wo rldwide. Advisors’ Opinion:

  • [By Corinne Gretler]

    Royal KPN NV (KPN), the former Dutch phone monopoly, surged 13 percent to 1.80 euros as three people familiar with the matter said Telefonica SA is in advanced talks to take over its German mobile-phone business.

  • [By Corinne Gretler]

    KPN (KPN) surged 16 percent to 2.32 euros as America Movil offered 2.40 euros a share for the company. The price — a 20 percent premium to KPN’s close yesterday — would value the stake that America Movil doesn’t already own at 7.2 billion euros ($9.6 billion). The Mexican mobile-phone operator has a 29.8 percent holding in KPN. An agreement between the two companies to limit America Movil’s stake to 30 percent expired after KPN agreed last month to sell its German business E-Plus to Telefonica SA.

  • [By Namitha Jagadeesh]

    BP Plc and Royal Dutch Shell Plc each slipped at least 1 percent as crude declined after the U.K. parliament rejected a motion for military action against Syria. Royal KPN (KPN) NV slid 3.4 percent after America Movil SAB said it may withdraw its takeover bid if opposed by the company’s independent foundation. Hermes International SCA climbed 2.1 percent after reporting operating profit that surpassed analysts’ estimates.

10 Best Telecom Stocks For 2015: Neustar Inc (NSR)

NeuStar, Inc., incorporated on December 8, 1998, is a provider of real-time information and analysis. The Company operates in three segments: carrier services, enterprise services and information services. The Company combines data sets to develop algorithms, models, point solutions and complete work flow solutions. The Company provides services, such as database services (telephone number databases, domain names, short-codes and fixed Internet protocol (IP) addresses), analytics platforms used for Internet security services, caller identification services, Web performance monitoring services and real-time information and analytics services. In October 2013, Neustar, Inc acquired Aggregate Knowledge, Inc.


Carrier Services

The Company’s carrier services include numbering services, order management services and IP services. Its numbering services enable the dynamic routing of calls and text messages. In particular, the Company provides near real- time updates to the North American telephone numbering system that is essential for the accurate routing of telephone calls and text messages. In addition, it also facilitates order management and work-flow processing among carriers, including telephone number inventory management, and allow carriers to manage and optimize the addressing and routing of IP communications. The numbering services the Company provides to its carrier customers using these databases include number portability administration center services (NPAC Services), in the United States and Canada and local number portability (LNP), services in Taiwan and Brazil, or international LNP solutions, and number inventory and allocation management. The Company’s order management services permit its carrier customers to exchange essential operating information with multiple carriers in order to provision and manage services. The Company provides these services through a single interface or on-premise installation s. In addition, it offers inventory management services that! allow its carrier customers to manage their assigned telephone numbers and associated resources. The Company provides scalable IP services to global carriers and service providers that allow them to manage access for the routing of IP communications, such as multimedia messaging service. Its solutions also provide accurate and reliable routing of text messages and voice calls by identifying terminating service provider networks. In addition, it provides a solution for carriers to migrate from the public switched telephone network to IP Interconnect through mapping a phone number to an IP address for accurate and reliable routing to a carrier’s network.


Enterprise Services

The Company’s Enterprise Services include Internet infrastructure services and registry services. It provides Internet infrastructure services that its customers use in order to direct, prioritize and manage Internet traffic. In addition, enterprise customers rely on its ser vices to optimize their Website performance, including protecting against malicious traffic. Enterprises use its infrastructure and its datasets to identify the location of their online customers for a variety of purposes, including fraud prevention and marketing. It also operates the authoritative common short codes registry on behalf of the United States wireless industry. The Company provides a suite of domain name systems (DNS) services to its enterprise customers built on a global directory platform. These services play a key role in directing and managing Internet traffic flow, resolving Internet queries, providing security protection against distributed denial of service attacks, providing geolocation services used to enhance fraud prevention and online marketing, and monitoring, testing and measuring the performance of Websites and networks. The Company operates the authoritative registries of Internet domain names for the .biz, .us, .co, .tel and .travel top-level d omains. It also provides international registry gateways for! China’! s .cn and Taiwan’s .tw country-code top-level domains. All Internet communications routed to any of these domains must query a copy of its directory to ensure that the communication is routed to the appropriate destination. The Company also operates the authoritative common short codes registry on behalf of the United States wireless industry. In addition, it operates the user authentication and rights management system, which supports the UltraViolet digital content locker that consumers use to access their entertainment content.


Information Services

The Company’s Information Services include identification services, verification and analytics services, and local search and licensed data services. It utilizes databases and solutions to inform real-time decisions on customer initiated interactions over the telephone, Internet and at points of sale. Its services correlate attributes, such as demographic information, projected buying behaviors and location. Its business listings identity management services manage the placement of its customers’ online local business listings on search engines, improving brand awareness and targeted advertising. The Company provides Caller ID services to carriers in the United States and real-time identification and location services to over 1,000 businesses in the United States across multiple industries. Its location service enables clients to match a 10-digit phone number to a latitude and longitude, and is used for a number of applications, including intelligent site planning, market scoring, and Web-based location lookup. In addition, it provides services that enable clients to remarket to non-converting prospects and to help identify whether an inbound inquiry is coming from an existing customer or a prospect. The Company provides lead verification services that allow clients to validate customer data, enhance leads and assign a lead quality rating to each lead to provide a c lient the ability to contact a customer. The Company provide! s an onli! ne local business listing identity management solution that serves local search platforms, national brands, authorized channel partners and local businesses. This service provides businesses and channel partners the essential tools to verify, enhance and manage the identity of local listings on local search platforms across the Web, and offers local search platforms an accurate, complete and up-to-date database of local business listings for online publishing.

The Company competes with Accenture plc, Computer Sciences Corporation, Hewlett-Packard Company, International Business Machines Corporation, Noblis, Inc., Nortel Networks Corporation, Pearson Education, Inc., Perot Systems Corporation, Telcordia Technologies, Inc., VeriSign, Inc., Afilias Limited, Oracle Corporation, Synchronoss Technologies, Inc., Syniverse Technologies, Inc., Akamai Technologies, Inc., F5 Networks, Inc., Keynote Systems, Inc., Compuware Corporation, TNS, Inc., eBureau, LLC, Acxiom, Nie lsen Holdings N.V., DataLogix International Inc. and infoGROUP Inc.

Advisors’ Opinion:

  • [By Jayson Derrick]

    According to Reuters, several private equity firms have expressed interest in acquiring Neustrar. (NYSE: NSR) The company has hired financial advisers to help explore its options. shares gained 2.26 percent, closing at $29.36.

  • [By Chris Mydlo]

    NeuStar Inc. (NSR) is trading at a low P/S ratio of 1.90, near its 10-year low of 1.87. The company provides technology and directory services to customer pursuant to various private commercial and government contracts worldwide. It is held by 10 gurus we follow.

  • [By Damian Illia]

    The company’s revenues come from the fees charged for operating different domain names. Most domain names’ fees are charged as per agreement terms with ICANN; however, fees received for operating the .gov registry are based on the terms of agreement with the U.S. General Services Administration (GSA). As of September 2013, revenues of $125.9 million came from active domain names ending with .com and .net. Even though the company has presence all over the globe, the U.S. contributes 64.8% of revenues, while Europe, the Middle East and Africa (EMEA) contribute 15.5%, Australia, China, India and other Asia Pacific countries (APAC), 15.0%, and other countries such as Canada or Latin American countries, contribute 4.7%. Competition is increasing, especially with Latin script ccTLD registries and IDN ccTLD registries, as well as with other name service providers such as Neustar Inc. (NSR) or ARI Registry Services, and search engine providers such as Google Inc. (GOOG) Micros oft, Corp. (MSFT).

  • [By Magic Diligence]

    Short sellers have been mouthing off about GameStop since at least 2008, and all the stock did was go up – all the way to a high of over $55 back in October. So forgive me if I’m not sold on digital distribution and smartphone gaming “killing” the company just yet! There were 2 catalysts for the recent drop. One, the stock was probably overvalued in the $50’s, considering its less-than-stellar growth prospects. Two, the firmreported a 22.5% drop in new software sales during the holidays. That’s not great, but console transitions have historically caused disruptions in software sales. In the meantime, GameStop continues to buy back large amounts of shares and the dividend yield is now over 3%. WORTHY OF CONSIDERATION.

    Neustar (NSR) – down 31.3%

    We’ve written about Neustar recently, with a positive opinion of the company. However, I also commented that the number portability contract renewal was a key risk. That risk looks even more acute considering the firm’s comments about a second proposal being rejected by NAPM. It is rather mind-boggling that management would goof on such an important piece of business – it is well over half of the company’s revenue. But a Neustar without that contract is an entirely different company altogether, and the risks are too large now. PASS.