Hong Kong's Qwest Comm?
Earlier on tonight’s show Cramer took a look at Qwest Communications, a speculative regional telco with a bountiful dividend. But Q needs an economic recovery in order to grow, and that isn't a guarantee if health-care reform passes. Just in case, Cramer turned to City Telecom HK , a foreign telco carrier with a sizable dividend that looks a lot like Qwest.
CTEL, which will pay a 4.2% dividend yield for its 2010 fiscal year, provides internet, phone, TV and corporate data services in Hong Kong. The company's goal is to become the city's largest Internet Protocol service provider by 2016, but right now controls just 5% of the market. In its defense, though, CTEL is already the second-largest player in broadband, where it has a 19.6% share of subscribers.
Also, the company has been paying down its debt and now has a net-cash balance sheet. And the dividend seems secure, Cramer said, given that the payout is only slightly more than half the size of CTEL's expected earnings for 2010.
Does CTEL make for an interesting speculative Chinese dividend play? And can the company continue to expand its base? To answer these questions and more, Cramer invited CFO Niq Lai on to Mad Money. Watch the video for the full interview.
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