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While Europe seems to burning to the ground, there arre a few stock opportunities worth taking a look at during the market meltdown. france Telecom is a high yielding play that is trading 47% below fair value.  FTE is trading around $17.00 per share.  Based on the discounted cash flow model the fair value is $32.00.  Consider the stock a buy up to $22.00 per share.  The stock has a forward PE of 8.  The dividend yield is 9.6%.  This is worth a look as an addition to your high yield stock portfolio.

France Telecom (FTE) is the incumbent telephone operator in France, which accounts for about half of the firm's sales. French revenue is split between wireless (47%), fixed line (30%), and other carrier services. FTE's other largest revenue sources include Spain (8.5%), Poland (8.4%), and the rest of the world (19%). Orange Business Services also supplies 15.9% of sales, along with an international carrier business and eliminations.  FTE's objective is to manage growth opportunities and costs for the optimal benefit of its stakeholders.

FTE should continue to generate significant free cash flow each year for the next five years, which can be used to pay down debt and maintain the dividend, which has increased to EUR 1.40 per share from 0.48 per share five years ago. The stock currently has a gross yield of almost 9%, and before foreign tax withholding of as much as 25%. The dividend only consumes about 46% of the firm's free cash flow.

The firm has merged its operations in the U.K. with those of Deutsche Telekom. In-market consolidation generates significant cost savings.

Orange continues to look for smaller acquisitions. Since 2007, it has entered seven new African countries, including its recently acquired 40% of Meditel in Morocco and 44% of Korek Telecom in Iraq.

We think Poland's government is making the correct decisions, which is helping it distinguish itself from many of its Eastern European brethren. We think it is likely to recover faster than its  neighbors, helping FTE's Polish division to get back on track.

FTE expects at least 30% of its employees to reach retirement age over the next seven to eight years, which will allow significant cost savings from natural attrition.

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