7 Foreign Telecom Stocks to Hang Up On

Telecom stocks like AT&T (NYSE: T ) and Verizon (NYSE: VZ ) are popular because
of stable business models and rich revenue streams that add up to big dividends.
But don't fool yourself into thinking a tip-top dividend yield makes all
telecom stocks a good investment. Many telecoms that provide service overseas
have been caught up in the euro zone debacle and other local issues that have
sent their shares sharply downward, offsetting any income potential. I watch
more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking
companies by a number of fundamental and quantitative measures. This week, Ive
pinpointed seven foreign telecom stocks to hang up on. Here they are, in
alphabetical order. Each one of these stocks gets a "D" or "F" according
to my research, meaning it is a "sell" or "strong sell." France Telecom
(NYSE: FTE ) is an international company that focuses on fixed and mobile
communications, data transmission and the Internet and multimedia among other
services. Despite its global reach, FTE stock has foundered this year, down
nearly 24% year-to-date. KT Corp. (NYSE: KT ) is an integrated telecom that
operates in South Korea. Like many other international telecom stocks, KT is
down this year, in this case by 26%. Portugal Telecom SGPS (NYSE: PT ) stock has
dipped 46%, year-to-date, compared to the Dow Jones, which is down less than 1%.
Tele Norte Leste Particiapcoes (NYSE: TNE ) is based in Brazil and offers a wide
range of services, including fixed-line and mobile telecom, data transmission,
pay TV, Internet and call-center services. A drop of 37% year-to-date has left
many TNE shareholders wondering why they made their initial investment.
Telefonica (NYSE: TEF ) is based in Spain and operates in the telecom, media and
contact-center industries. TEF has followed the lead of many other telecom
stocks and is down 20% since the start of 2011. Telecom Argentina (NYSE: TEO )
provides numerous services, including: national fixed-line telecommunications,
international long-distance, data transmission, Internet and mobile phone
service. A stark dip of 27% for TEO has far outpaced the minimal losses by the
broader markets. Telekomunikasi Indonesia (NYSE: TLK ) offers many services, not
limited to fixed wire-line and fixed wireless phone, mobile cellular, data and
Internet and network and interconnection. TLK may have looked like a smart buy
for some, but it has dipped almost 9% year-to-date. Get more analysis of these
picks and other publicly traded stocks with Louis Navellier's Portfolio Grader
tool, a 100% free stock-rating tool that measures both quantitative buying
pressure and eight fundamental factors.