Rate:
Share
Views: 940
Text Size:
Comments (1)

Deutsche Telekom Stock

Social Marketing Will Make This Stock a Winner

By Sam Hopkins
Monday, May 18th, 2009

They came in droves to T-Mobile's party. Admission was free, and so was the booze.

Few cared about the fact they'd just become a walking T-Mobile ad... Bright wristbands emblazoned each partygoer with the company's logo and new product name.

I heard the news from a friend who read about it on Facebook. Another buddy found out that a top DJ was set to spin music all night.

But the key for Deutsche Telekom (NYSE:DT), T-Mobile's German parent, is that the bash will always be remembered as "that T-Mobile party."

With DT's share price way down, its dividend nearing double-digits, and a social marketing strategy in place to keep the revenue pipeline flowing, we could be looking at a great global telecom play.

Walking Billboards

Word of mouth is no longer word of mouth, after all. Text messages, Facebook posts, tweets, and chirps can turn every potential reveler into a peer-to-peer electronic marketing unit.

Right now, with ad budgets tighter than ever and customer retention being everyone's top task, social marketing makes sense.

The cost of acquiring new customers can vary wildly from company to company and campaign to campaign. . .

Yet, it must be true today that rather than cast the advertising dragnet of a billboard — where you grab plenty of eyes but maybe only a few you really want — social marketing allows for better focus and more momentum as the marketing message goes viral.

Otherwise, T-Mobile wouldn't be buying Jack Daniel's & Coke for a warehouse full of 20-somethings.

Advertisement

The Most Profitable Physical Gold Investment EVER!

Don't settle for only 100% of your gold profits anymore. There's a brand new investment vehicle that allows you to DOUBLE your profits from gold!

And with gold prices expected to skyrocket as high as $5,000 an ounce, this could be the safest and most profitable investment of a lifetime.

To learn more about this incredible opportunity, just click here.




Winning with Global Telecom Strategies

The 18-24 demographic is more powerful today than ever before. Winning a new customer means new revenue through service upgrades, overage charges, and a constant urge to have the freshest voice and data devices.

But Mobile Number Portability (MNP) is the sword dangling over every telecom exec's head, threatening to take all that juicy income elsewhere.

As I'm the traveling type, the communications advances of the past half-decade have made my life amazingly easy to manage, no matter where I am.

Most importantly, perhaps, MNP allows me to take my 10-digit phone number to any company that can successfully woo me.

Spending to drag customers like me away from a competitor with MNP requires more effort through upfront spending and direct pricing competition. That can mean a $200 credit on a $250 phone, or unrelated goodies like drinks and dancing.

T-Mobile recognizes the continuing revenue opportunities that social marketing can create (their dance invasion of a London Underground station this spring was also a YouTube sensation).

This year will probably still be tough for Deutsche Telekom shares and telecoms in general, and the company just warned on full-year earnings in late April.

Nevertheless, as a lasting proposition for earnings growth, I like what the company is doing.

NYSE:DT currently trades at just over $11 per share, down from nearly $18 one year ago.

Of course, I wouldn't expect you to wait around for the company to throw you a party just so you pick up some shares.

It's their hefty dividend over 9% (DT just paid $1.04 on under $11 per share April 28) that should keep you hanging with it.

Regards,

sig
Sam Hopkins

P.S. When I go abroad, I don't just use telecoms to connect me to my family, work, and friends. . . I also make observations and compare market conditions everywhere I set foot. In Japan, for example, I met with executives at phone giant NTT DoCoMo to get the scoop on their new marketing approach. I recommended the stock based on my research, and it was up nearly 20% within weeks. Now, I'm working with Options Trading Pit editor Ian Cooper to pinpoint winning — and losing — telecom strategies. To learn more about OTP and our international angle, click here: http://www.angelnexus.com/o/web/12495






Rate this article:
 
     Current Rating:  
Article RatingArticle RatingArticle RatingArticle RatingArticle Rating (6 votes)

Comment on this Article


Comments:

Comment by Garry Thomas on 2009-05-18
Deutsche Telekom did just deliver an once-per-year $1.08 dividend vs. last year at $1.238; but the currently reported dividend is $0.78 paid out next April-May and their projected earnings are dropping.. That is not that much to crow about. For example, Windstream (WIN) pays about 12% annually on a quarter schedule and has a much better projected earnings!