Is China Mobile still a good bet?
China NetCom just got hit hard due to competition from mobile operators. China Mobile is down BIG this year...is now a good time to buy?
Answers
123 points
CakeFinancial answered one year ago …
some of the best investors at Cake have been hopping in, bringing CHL up to an A+ grade - so some people out there think it's a good time to buy!
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3963 points
MNSL answered one year ago …
I think telecom sector will do badly in the next 24 months. We should buy telecom stocks in fire sales keeping long term in mind.
There will be competition for some companies in the future.
362 points
smi answered 6 months ago …
My fav bet is telecom sector.. Not for short but for long it will be the wise bet. The competition from the mobile operators had been resolved and now China mobile will soon get back into the track. But if it could make some tie ups or takeover some emerging player the stock will definitely Be the biggest hit in the market...
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MNSL answered 6 months ago …
I think time is not right for some technology stocks, steel stocks and telecom stocks. This is the time to invest in simple business and out of favor companies.
This is the time to invest in innovative companies that making use of lower spot prices of raw materials and commodities. We can find global companies in this category in many sectors and some will become future leaders in the next 10 years.
Some of the Risk Factors are:
The industry is already shrinking
China’s telecom industry will see its revenue growth continue to slow and its costs continue to rise over the next two years.
Increased competition
High investment in the rollout of 3G services will also impact the profits of telecom operators
Growth in China’s telecom industry will slow over the next two years
Macroeconomic factors
Reduction in spending in export-oriented east coast regions - which account for 35% to 40% of the
telecom industry’s revenues
