Opinion on  Telefonica S.A. (TEF)     Sector: Services  >  Industry: Communications Services
Telefonica

I'd prefer to own the local shares, but the ADR will have to do for this super cheap (we're talking '08 FCF yield of 10%, div yield of close to 4.5%, and EV/EBITDA of ~6.5x) growth stock (6+% top-line). Fear over UK and German weakness at O2 given price declines should be offset by great Spanish fixed and wireless market. Plus there is only upside from here for the LatAm assets including VIVO which I believe they will consolidate 100% of at some point in the near future as PT is a seller at the right price. Insiders have also been very actively buying this stock, including the CEO and other management types.