Shares of global telecom giant Telefonica (TEF) have been decimated lately as most Spanish stocks (even those cross-listed in the U.S. like Telefonica) have taken a beating due to the economic crisis in Spain. But while Spain does suffer from a recessionary environment and an unemployment rate of 23%, the market has likely overreacted when it comes to Telefonica: its shares are down 43% in the last year, even though only 30% of the company’s profits come from Spain, whereas over half of the company’s profits come from a healthily growing Latin American market.
Read more…
Stocks
