Wednesday, July 7, 2010

Phone Stocks: The New Treasurys?

You do not need to search far to find prophets of doom warning you away from one asset class or another. Normally, I pay no particular attention to this - it is the ongoing differences of opinion between investors that give us a vibrant market, and there is certainly money to be made in finding creative ways to shout "we're all doomed!" on financial TV. 

Still, I cannot help but wonder about certain investment opportunities. There are plenty of reasons to be skeptical about the return potential in U.S. Treasury securities, and I wonder if investors can do better for themselves with other instruments. Specifically, I am interested in comparing the investment prospects of government bonds to those of major telecommunications companies.  

To read the complete piece, please go to: 
http://stocks.investopedia.com/stock-analysis/2010/Phone-Stocks-The-New-Treasuries-VZ-T-PHI-TLK-FTE0707.aspx 

NB - in the fixed income world, the plural form of a Treasury bill is typically "Treasurys", not "Treasuries". I'm trying to convince my editors at Investopedia of this detail...  

2 comments:

Tshad said...

Good article.
Any on your wish list?

Stephen Simpson said...

@ Tshad -
I've thought a lot about VZ and FTE lately. FTE has seemed almost "scary cheap" (in other words, what am I missing?).

PHI and TLK are perennials on my watch list.

I'm also looking seriously at MTN Group (MTNOY).

Oh, and I own AMX and TKC (full disclosure).