Investors don't love telecom service providers like they used to,
largely due to extreme competition that has made it difficult to grow
revenue or improve margins, all the while spending billions on equipment
to keep the network current. It's arguably worse in the case of SK Telecom (NYSE:SKM),
as management here has made it clear that they believe they're able to
do more than just run a telecom business and have deployed billions of
dollars in questionable non-telecom investments. While the sharp run-up
over the past year was largely reasonable, as it brought SK Telecom back
into parity with many of its global peers, it's hard to argue that
these shares deserve to go much higher.
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http://www.investopedia.com/stock-analysis/061813/enthusiasm-over-sk-telecom-has-gone-far-enough-skm-kt-chu-vz-t.aspx
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