Globalization has created both opportunities and threats for
various industries. Where globalization has forced inefficient businesses to
leave the market, it has also provided other business with a potential to grow.
Since globalization has made it extremely important for the businesses to speed
up the communication process in order to make speedy decisions effectively, the
importance of telecommunication service industry has grown exponentially over
the years. Not only is this industry essential for businesses but it also plays
a vital role in commercial usage. Telecommunications
industry makes it possible for the people to communicate within seconds and
this is exactly why the industry has been experiencing growing demand despite
presence of various other alternatives for communication. Some of the leading
brands across the globe include Telecom Italia SpA , Oi SA , ARC Group WorldWide Inc.,
Telecom Argentina
S.A. , Atlantic
Tele-Network, Inc, Neustar
Inc., Black Box Corporation, 8x8, Inc., TW Telecom Inc and IDT Corporation.
Since many companies are competing among each other for the market
share of the telecommunication industry, the market structure is more
competitive then oligopolistic in nature. This means that any new technology or
innovation introduced by one company forces another company to do the same in
order to maintain its market share. This is perhaps the primary reason why so
much of technological advancement has taken place over the years. Due to its
development and vast use across the globe, this industry has experienced an
increase in consumer demand over the years, however, for determining its
financial standing, the industry needs to be analyzed in terms of the stock
performance of various companies which would aid the investor in making the
optimal investment decision.
As per the analysis of bidnessetc.com, the stock performance of
various companies is listed here. Beginning with the stock performance of Telecom Italia SpA , the stock started off at EUR0.60 and
increased to EUR0.93 which shows an improvement of 55% and thus an upward trend
in the demand for the company’s stock with a chance to the investors to make a
high capital gain. However, the company offers no dividend payments to its
stockholders but compensates them by the high stock prices. Moving on, the
stock prices of Oi SA have shown a downward trend; it was at a value of
$1.87 last May but fell to $0.94 recently. In addition to this, though the
company made dividend payment last year, it has paid no dividends for the
current year. Moreover, the stock performance of ARC Group WorldWide
Inc has shown
an exceptionally well result; the stock price was $5.40 last May but increased
to a level of $12.82 recently showing an increased demand for the company’s
stock. An interesting part here is that this company has offered 2 extra shares
for every 5 shares owned in the company instead of offering dividends.
Furthermore, the stock performance of Telecom Argentina S.A also shows an
upward trend by increasing from a level of $15.16 to $20.55, thus showing an
improvement of 365 overall. The company also offers a dividend per share of
$0.387 which is lower than that offered last year. Lastly, , Atlantic
Tele-Network, Inc also shows
an improved performance by increasing its stock price from $49.77 to $58.80,
thus showing an increased demand and an improved stock performance by 18%. In
addition to this, the company also offers a dividend of $0.27 which is higher
than that offered last year.
Hence, on the basis of above facts, one can safely conclude that
the industry has shown an overall increase in demand, which is reflected by the
rising stock prices of various companies. Hence the industry is a good site for
portfolio investment because it provides the investor with good prospects of
capital gains and a decent dividend yield. As far as investment in particular
companies is concerned, Atlantic
Tele-Network, Inc would be recommended for investors
looking for greater capital gains prospects because the company shows the
potential of increasing stock prices in future. In addition to this, the
company is also increasing its dividend payments and hence is a good site for
investment. For any
further information regarding your investment, please visit bidnessetc.com.
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