Buy Signal on Tele2
Our system also triggered a bullish Tactical signal on January 19, that suggest a bullish acceleration. Tele2 has a rather Strong track record, with a Behavioral score of 9/10, therefore the bullish signal is to be considered as mainly Strategic.
Tele2 is a SEK 91.7 Bn market cap company which is one of the main European telecommunications operators.Revenues are mainly derived from telecommunications services for end users (72%)including fixed and mobile telephony services, Internet access, data transmission and cable television broadcasting;2/ sale of telecommunications equipment (19%)and 3/ provision of telecommunications services to telecom operators (9%).
Sweden, the company's core market, remains an extremely mature and well-developed end market, with relatively little churn for any of the major three operators. The companies constantly try to outdo one another to capture the all-important B2B customers, all with relatively little fundamental success. Therefore, Tele2 is clearly a defensive play with limited EPS growth but significant dividend yield. The current dividend yield stand at 6.7%.
Short term catalyst : Risk-off market mood, dividend yield.
This signal looks consistent with the bullish momentum currently active on European Telecom stocks. There is currently 65% of European Telecom stocks in bullish tactical signal and 19% in bullish strategic signal.