GDS Holdings (GDS) is a Chinese company in the data center business, and its carrier-neutral, cloud-...
“Talking” at a Discount
11/27/2007 12:00 am EST
A pullback is providing an opportunity to jump on board this fast-growing telecom stock, says Kevin Kennedy, publisher of the Coolcat Report.
My stock pick of the week is China Mobile (NYSE: CHL), the leading mobile services provider in China. The company boasts the largest global unified, contiguous all-digital mobile network as well as the world's largest mobile subscriber base, comprised of more than 356 million subscribers.
China Mobile operates nationwide mobile telecommunications networks in all 31 provinces, autonomous regions, and directly-administered municipalities throughout Mainland China. It also operates networks through 32 subsidiaries in Hong Kong. The company's GSM global roaming services cover 219 countries and regions while its GPRS roaming services extend to 138 countries and regions.
China Mobile has 118,000 employees. The company has annual sales of almost $44 billion and annual net income of nearly $10 billion. Both revenues and earnings are growing about 20% annually. The company controls about two-thirds of the Chinese wireless marketplace and is on track to provide wireless service to a third of China's 1.3 billion people. China Unicom (NYSE: CHU), its largest competitor, has most of the rest of the market.
The company's third-quarter net income reported Oct. 22 rose 38% to $2.93 billion, while its sales grew 21% to $12.2 billion. China Mobile's market capitalization is $336.25 billion. The company's shares are currently trading at 34 times its earnings. Its price-to-sales ratio is 7.42 and its 52-week moving average is 86.70.
China Mobile's shares currently are trading with an average volume of some 4.18 million shares of its 4.0 billion total outstanding shares changing hands daily. The stock is up 99% this year and is 19% off its Oct. 29 high of $104.00. The shares have traded in a 52-week range between $39.20 - $104.00. The shares' seven-month winning streak is in jeopardy. My Possible Strategy: Buy at $77.00 or less with an intermediate-term target of $115.
For more information, visit www.chinamobileltd.com.
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