Stock Tips for Today: Telefonica S.A. (TEF)

Yesterday, the market had its worst fall of the year. The DJ-30 lost 1.57%, the SP-500 had retreated 1.54% and the Nasdaq Comp. decreased 1.36%. Volumes grew in relation to the day before. All this has contributed to deteriorate the situation of the market in technical terms. The three indices violated the support of the Simple Moving Average 18 days and approached the Simple Moving Average 50 days.
It is likely that today, the DJ-30 challenge this level. It will be very important to see what the outcome of this situation. If the DJ-30 falls below this level, it is likely also the other indices do too. In that case, we would enter a more severe correction process. For this reason, it is not easy to find stocks with upward trend with good patterns. Rather, there are many stocks with downward trend re showing good behavior.
One such case is that of Telefonica S.A. (TEF). This stock closed yesterday at US$ 16.35, representing a fall of 3.65% in relation to a day before. Its volume was 6.69 Millions of shares, almost twice its daily average. The Market cap. of this company is US$ 24.60 Billions. Its P/E is 3.44 and EPS of 4.75. After 12 weeks of consolidation, this stock break down this price. His next stop is located around US$ 13.00. Do you dare buy Telefonica's 11.7% yield?

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, rest of Europe, and Latin America. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone; local, domestic, and international long distance and fixed-to-mobile communications; corporate communications; video telephony; supplementary and business-oriented value-added services; network services; leasing and sale of handset equipment; and telephony information services. The company’s Internet and broadband multimedia services comprise Internet service provider service; portal and network services; retail and wholesale broadband access; narrowband switched access to Internet; naked ADSL, a broadband connection; residential-oriented value-added services; companies-oriented value-added services; television services, such as IPTV, cable television, and satellite television; and Fiber to the Home, a service for high speed Internet access and digital video recording. Its data and business-solutions services principally include leased lines; virtual private network services; fiber optics services; the provision of hosting and application; outsourcing and consultancy services; desktop services; and system integration and professional services. The company’s wholesale services for telecommunication operators primarily comprise domestic interconnection services; international wholesale services; leased lines for other operators’ network deployment; local loop leasing under the unbundled local loop regulation framework; and bit stream services. It also offers various mobile and related services and products that include mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and trunking and paging services. The company has a strategic alliance with China Unicom (Hong Kong) Limited. Telefonica, S.A. was founded in 1924 and is headquartered in Madrid, Spain.