jump to navigation

why did I buy 70 (DT) Deutsche Telekom shares? February 5, 2007

Posted by deminvest in Deutsche Telecom, Dogs of the Eurostoxx 50, European Stocks, investment, stock I own, stocks, stocks that pay high dividends.

1)  I wrote I would

2) DT it the third member of the Dogs of the Eurostoxx 30  and I like to follow the Dogs strategy

3) It pays hefty dividends 5.20%

4) I want to invest in Europe. European economy is restarting now. Many “big-wise-smart-super experts” say that US economy is unstable because is sitting on a huge debt, by the Federal government and by US citizens, and because of the “Twin Deficit”: Federal deficit and Foreign Trade Deficit

5) DT is slowly paying off its debts.


Why maybe I should not have bought DT Deutsche Telekom:


1) Telephone utilities may be in trouble as soon as people learn how to use Skype and other VOIP systems which allow to talk for free over the Internet

2)  DT has a big debt: 57.22B which is not far from their yearly Revenue: 79.03B

3) DT has an ok P/E:  11.64 which is expected by analysts to go to 18.31, meaning earnings are expected to decrease.

4) Earnings are really decreasing as we can see comparing  this to last year: Qtrly Earnings Growth (yoy):-20.40%

5) Revenue is stable: Qtrly Revenue Growth (yoy):2.80%


Am I happy that I loaded 70 DT at $17.61 (or EUR 13,59) each?

Not reaaly

Am I  satisfied of investing $1232 ( EUR 951) on DT?

Not really.


We will see, maybe I am wrong thinking I made a mistake, which is a nice thing  that often happens to unskilled investors! (and to professionals too…!)




No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: