Telecom Stocks – Liking the Unloved

Telecom stocks continue to gain strength as more investors realize they won’t stay down forever. Once, the rage of the Tech bubble era, telecom stocks had since become so out of favor that many swore them off as viable investments. At the beginning of 2000 Telecom HOLDRs Trust (TTH) Exchange Traded Fund traded at $90 a share as prices of telecom companies were in the clouds. The next two and a half years would see the fund’s share price loose over 75% of its value to $22 a share, then the fund would take another four years to beak convincingly above $30. On Friday 9/1/2005, the fund closed at $32.03, a five year high. Since I first spotted the promising looking chart about six weeks ago, I’ve made five buys, with the lowest gain now at 3.22% and the highest up 9.97%. This sector seems to now be in the beginning stage of a multi year move up. Hold tight.