9. Tele Norte Leste (TNE) is a provider of telecommunication services, including products such as fixed and mobile telephony and data transmission services.
Revenue declined during the September quarter because of the drop in broadband and mobile subscriptions. However, margins came in better than expected at 37%.
Capital expenditure amounted to 8% of revenue during 2010 third quarter. The company intends to raise $8-8.5 billion capital during the first quarter of 2011, which is likely to reduce its existing debt.
The stock is trading at 6.6 times its estimated 2011 earnings and has gained only 3% during the last one year; however, it has been an outperformer in the last one month. Based on analysts' consensus estimates, the stock has an upside potential of 17% from present levels.
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