Wednesday, November 01, 2006
My cyberfreund Keith McMahon has some interesting thoughts on Telenor, which he presents here. I hope the team at SeekingAlpha is reading this, because it's right up your street, and once again demonstrates how the opinions of the frank, uninhibited and well-informed blogger can potentially put the brokers on the back foot. Only three out of 30 brokers have negative ratings on Telenor (I am one of them), and my suspicion is that the sell-side is glad to have a rare bit of strong performance from a sector which has been out of favor for years, and is milking it for all it's worth. True, Keith is not going head to head with the brokers - he doesn't have forecasts and doesn't spend two pages talking about scintillating topics like working capital or cash tax - but he does highlight some risk factors which are worthy of attention, especially after such a strong run this year. In particular I like the risk score he derives by weighting group revenue contribution by country according to the corruption ratings issued by Transparency International - then again, I would like it, as I am the "anonymous" collaborator he alludes to.