Thursday, July 29, 2010

Turkcell: A Demographic play

"Production depends upon people, not only in the actual process, but because of the final demand that justifies its existence. The more and more consumers, the more and more need for things to be produced. I will go so far as to say that not only growth but capitalism itself may be in part dependent on a growing population."

Bill Gross, PIMCO, August Investment Newsletter

Turkcell is a company that has great prospects from being the #1 wireless provider in Turkey. Turkey has a median age of 27.2 and 25% of the population is under the age of 14. This means that there are huge demographic forces that will increase overall demand for wireless services in the Turkish domestic market.

Add a great balance sheet, significant growth prospects in Eastern Europe, and solid customer satisfaction ratings, and Turkcell is a great long term holding.

Long TKC at $15.


Lockstep said...

$18.50 now. Still long. Overall growth in Turkey is at a 7% rate and the growth at Turkcell has corresponded to that. Also the drop in the USD has helped out.

Long and strong.

Lockstep said...

The USD at a historical support level encourages the author to sell calls against this position. But there was little demand for calls for any reasonable calendar
(3 to 6 months)


Turkcell sounds interesting.