Stick with the Allstars
We often get asked, ‘what will it take to get the sector working?’ A difficult question, without an easy answer. However, with results missing expectations, guidance falling below consensus, andn top-line growth slowing just as we enter an increasing rate cycle - what we know for sure is that 4Qn was not the answer. What then should investors do? As we showed in our 1, 3 and 5 year view - investors should seek exposure to companies that provide 1 year earnings upgrades, have a capacity to invest and remunerate shareholders, while scoring well on our 5 year scorecard. Our Telecom Allstars that meet these criteria are DNA, Elisa, Vodafone and Tele2.