Daily Stock Analysis: Telecom Argentina SA

Telecom Argentina SA, bears the ticker symbol (TEO), and this is my second mention of TEO for this Viking Portfolio. I also discussed it back on January 11.

telcom

Telecom Argentina SA offers its customers quadruple play services, combining mobile telephony services, cable television services, Internet services and fixed telephony services.

It also provides other telephone-related services such as international long-distance and wholesale services, data transmission and IT solutions outsourcing and install, operate and develop cable television and data transmission services.

The company provides these services in Argentina (mobile, cable television, Internet and fixed and data services), Paraguay (mobile, Internet and satellite TV services), Uruguay (cable television services) and the United States (fixed wholesale services).

The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018.

Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.

Three key data points gauge Telecom Argentina, or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

TEO Price

TEO’s price per share was $5.51 at Tuesday’s market close. In the past year, Teo’s share price fell $0.86 or 13.5%.

If Telecom Argentina’s stock trades in the range of $3.00 to $8.00 this next year, its recent $5.51 share price might fall to $5.50 by next year. My downside estimate of $0.01 could just as easily move to the upside. Three analysts cover Telecom Argentina’s stock for brokers. The median of their one year target prices is $4.38

TEO Dividend

Telecom Argentina’s most recent annual dividend of $.3139 paid-out July 5, 2022 to shareholders of record June 24.

TEO Returns

Adding a $.30 annual estimated

TEO dividend to my -$0.01  estimated price upside, reveals a $0.29 potential gross gain per share.

At Tuesday’s $5.51 closing price, a little under $1000 would buy 181 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.06 per share.

Subtract that maybe $0.06 brokerage cost from my estimated $0.29 gross price gain estimate makes a net amount of $0.23 X 181 shares = $41.63 or a 4.15% net gain.

In the next year our $1K investment in shares of Telecom Argentina SA might generate $54.40 in dividends. Furthermore, a single share of TEO at Tuesday’s $5.51 price is near 10 times below the annual dividend income from $1000.00 invested.

So, by my dogcatcher ideal, this may be a prime time to consider TEO shares, based on their dividends for 2023. The dividend from $1k invested is 9.87 times greater than TEO’s single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Telecom Argentina SA. Only time and money invested in this stock will determine its future market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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