Current Report: Telecom Argentina


Image Source: PixabayTM Editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.Telecom Argentina SA (TEO) offers its customers quadruple play services, combining mobile telephony services, cable television services, Internet services, and fixed telephony services.It also provides other telephone-related services such as international long-distance and wholesale services, data transmission and IT solutions outsourcing and install, operates and develops cable television and data transmission services.The company provides services in Argentina (mobile, cable television, Internet and fixed and data services), Paraguay (mobile, Internet and satellite TV services), Uruguay (cable television services) and the United States (fixed wholesale services)The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018.Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.Three key data points gauge TEO or any dividend paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.TEO PriceOver the past year, Telecom Argentina share price rose 48.8% from $5.16 to $8.08 as of Tuesday’s market close.In the past 10 years the company’s share price has never been less than $3.82 nor higher than $39.70. (Back in 2000 share price peaked at $46.75)If shares trade in the range of $6.00 to $10.00 this next year, the recent $8.08 share price might grow to $8.50. Of course, TEO price could also drop about the same $0.42 estimated amount, or more.My $0.42 price upside estimate is  the opposite of one year target prices estimated by the 2 analysts tracking TEO  stock for brokers. They expect TEO share price to drop $1.50 in the coming year.TEO DividendTEO paid variable annual dividends from 2010 to 2023. The company has not declared any dividend for 2025 or 2025.TEO ReturnsPutting it all together, a $0.42 estimated annual gross gain per share shows up by adding TEO’s Non-estimated annual dividend to the estimated price upside of $0.42, making that $0.42 gross gain.A little over $1000 buys 124 shares at the $8.08 price.A $10 broker fee (if charged), paid half at purchase and half at sale, could take about $0..08 per share out of the $0.42 gross-gain to give us a net gain of $0.34 X 124 shares = $42.16 for about a 4.2% estimated net gain for the year.Furthermore, the lack of  annual dividend income from $1K invested is discouraging. By these numbers, and with no dividend TEO is a sickly dividend dog.Thus, you should not pounce on TEO.  It is a 45 year-old former  dividend-paying Argentina-based  telecom with a discarded dividend record.The exact track of TEO’s future price and dividend will entirely be determined by market action and the company’s finances.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Report – AT&T
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