Stock from the Communication Services industry lends stability to portfolios buffeted by market volatility. Telephone services and wireless data transfer have integrated into modern life so inextricably that we cannot cut back on related expenses even in times of recession. A professionally managed company in this industry can continue to provide returns and growth during uncertain phases of stock market life.
This particular stock offers investors profitability, a sound financial base, and an appropriate expansion platform, as a trio of benefits. This must be why institutions own 58% of the company. The stock traded at $30.47 on February 22 2008, against a 12 month peak of $39.21: the company could soon move beyond the $500 million market capitalization mark.
The Net Profit Margin on Trailing Twelve Months basis is 19.89 against 6.33 for the Communication Services industry. The company is far ahead of the entire Services sector in terms of Gross and Operating Margins. However, it is the strength of the Balance Sheet which is even more deserving of investor support. Total debt to equity is just 0.25 at the end of the Most Recent Quarter. Rapid technological changes have driven this key ratio to 1.25 for Communication Services. The interest burden of the company is only a small fraction of its earnings: the Interest Coverage over the last four quarters is more than 1200!
This is a holding stock, and the structure of geographic operating subsidiaries located in Bermuda, Guyana, the Virgin Islands, New England, and rural USA seems to work well.
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