Tuesday, August 7, 2007

Net Servicos de Comunicacao S.A. (ADR)

Net Servicos de Comunicacao S.A. (ADR) is a NASDAQ listed security that has been trading in a range between $8.23 and $18.70 over the past year. With 335,055,500 shares outstanding, a recent price of $14.85 gives a total market capitalization of $4,988,976,510. While there are certainly larger companies, Net Servicos de Comunicacao S.A. (ADR) has definitely earned its place in the pack. Last year, Net Servicos de Comunicacao S.A. (ADR) created $0.68 in earnings for every share outstanding.

Net Servicos de Comunicacao S.A. (ADR) is currently priced by the market at 21.60 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Net Servicos de Comunicacao S.A. (ADR) could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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