Tim Holding Company (TSU): Today's Featured Telecommunications Laggard

Tim Holding Company ( TSU) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Tim Holding Company fell $1.18 (-5.3%) to $21.15 on heavy volume. Throughout the day, 3.8 million shares of Tim Holding Company exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $21.04-$21.75 after having opened the day at $21.47 as compared to the previous trading day's close of $22.33. Other company's within the Telecommunications industry that declined today were: USA Mobility ( USMO), down 17.7%, TeleCommunication Systems ( TSYS), down 10.1%, Motricity ( MOTR), down 9%, and Leap Wireless International ( LEAP), down 7.3%.

TIM Participacoes S.A., through its subsidiaries, provides mobile telecommunications services using digital technologies to business and individual customers in Brazil. The company offers mobile, fixed and long distance telephony, data transmission and Internet services. Tim Holding Company has a market cap of $11.27 billion and is part of the technology sector. The company has a P/E ratio of 15.4, above the average telecommunications industry P/E ratio of 7.7 and below the S&P 500 P/E ratio of 17.7. Shares are down 13.4% year to date as of the close of trading on Monday. Currently there are five analysts that rate Tim Holding Company a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Tim Holding Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Blonder Tongue Laboratories ( BDR), up 22.5%, MERU Networks ( MERU), up 12.1%, Nexxus Lighting ( NEXS), up 11.1%, and Dialogic ( DLGC), up 10.7%, were all gainers within the telecommunications industry with Nokia Oyj ( NOK) being today's featured telecommunications industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).
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