America Movil, Vodafone and Other Alternatives to RIM

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On Thursday, Research In Motion
RIMM
released another
disappointing quarterly report
. Revenues were down 43% year-over-year. Gross margins also declined. The company also warned of a net loss in the current quarter and said that it was pushing back the launch of its BlackBerry 10 operating system to the first quarter of 2013. At this point, many RIM investors may have lost patience. While those still in RIM could consider shifting their capital to a big competitor like Apple
AAPL
or Google
GOOG
, investors may want to consider some mobile-related alternatives with a lower profile but a global reach.
America Movil SAB de CVAMX
provides telecommunications services primarily in the United States and Latin America. It announced Friday it would increase its stake in Dutch telecommunications company Koninklijke KPN NV. It has a market cap near $96 billion and a dividend yield of about 1.1%. Its return on equity is of 28.7%. Over the past six months, shares have outperformed the Dow Jones Industrial Average.
BCEBCE
is a Canadian telecom. It beat earnings estimates in its most recent report and said its free cash flow was up 23.4%. It has a market cap near $31.0 billion and a dividend yield of about 5.2%. Its return on equity is 21.8%. Shares have traded mostly between $39 and $41 since February. Still, the stock has outperformed competitor Rogers Communication
RCI
over the past six months.
China Mobile Limited
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CHL
provides mobile telecommunications primarily in Mainland China. Apple's
AAPL
iPhone 5 is expected to support China Mobile's massive 3G network. The Hong Kong-based company has a market cap of more than $210 billion, a dividend yield near 4.0% and a return on equity of 20.5%. The share price rose almost 5% in June after pulling back in May from a multiyear high. It has also outperformed the Dow Jones Industrial Average over past six months. UK-based
Vodafone GroupVOD
is currently restructuring its European operations into two groups: Northern and Central Europe, and Southern Europe. It has seen its share price rise more than 9% in the past month. The global wireless provider has a $148.5 billion market cap and a dividend yield near 5.3%. Its long-term EPS growth forecast is 12.1% The stock has underperformed the broader markets over the past six months. The share price of
TELUSTU
is only up around 9% year-to-date, but traded near its 52-week high on Friday. Another Canadian telecom, this one opened a new concept store this week to serve Toronto businesses. The more than $18 billion market cap company has a dividend yield near 4.1% and a return on equity of 14.5%. The share price is flat over the past week, but over the past six months, the stock has outperformed both BCE and the Dow Jones Industrial Average.
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Posted In: Long IdeasShort IdeasDividendsTrading IdeasAmerica MovilBCEChina Mobile LimitedResearch in MotionRIMTELUSVodafone
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