Saturday, March 16, 2013

Why Oi S.A. Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian telecommunication service company Oi S.A. (NYSE: OIBR  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Oi and see what CAPS investors are saying about the stock right now.

Oi facts

Headquarters (founded)

Rio de Janeiro, Brazil (1963)

Market Cap

$5.9 billion�

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$12.3 billion�

Management

CEO Jose Mauro Mettrau Carneiro da Cunha (since 2013)

CFO Alex Waldemar Zornig (since 2008)

Return on Equity (average, past 3 years)

11.1%

Dividend Yield

21.3%

Competitors

America Movil

Claro

TIM Participacoes

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 557 members who have rated Oi believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, stockstar69, succinctly summed up the Oi bull case for our community:

Well established in Brazil. [Portugal Telecom], among others are big backers and need Oi to stay alive as an investment tool. Dividend is huge. ... [S]ecure dividend rating and Morningstar rates this stock a 4 star buy.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Oi may not be�your�top choice.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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