Thursday, May 22, 2014

Seeking Alpha: Orange SA Needs Market Repair To Fuel Another Leg

France's CAC 40 has done reasonably well this year, beating the S&P 500 and major European indexes like the FTSE, but Orange SA (ORAN) has blown the overall French market out of the water with the shares up almost 40% year to date. Shareholders have definitely embraced the company's ongoing cost reduction efforts and the company's major markets have largely settled down in terms of pricing.

Orange SA still has some opportunities to improve on its own, including 4G and fiber rollouts, but the shares valuation seems to factor a lot of that in right now. For the shares to keep up this momentum, I think the market needs to see more consolidation. With rumors out that Orange has approached Bouygues (OTCPK:BOUYY) and the French government previously indicating it was open to further consolidation, Orange may be able to push the French market toward much-needed market repair and unlock more value.

Continue here:
Orange SA Needs Market Repair To Fuel Another Leg

No comments: