China Mobile Ltd. (ADR) (CHL), Apple Inc. (AAPL): Investing in 4G TD-LTE? This Telecom Is Destined to Prevail

The venture between Apple Inc. (NASDAQ:AAPL) and China Mobile will be a big positive catalyst for both companies in the near-term. Sooner or later, China Mobile will be the first to receive the 4G license from Chinese officials, then multiple years of revenue growth and margin expansion can be expected. Investors should not forget who owns the large majority stake in China Mobile, and it is absolutely unbearable for China Mobile to fail again with its 4G development after its embarrassing 3G failure.

Bottom line

With such huge CapEx in 2013, China Mobile Ltd. (ADR) (NYSE:CHL)’s share price will be under pressure. It is a great opportunity to accumulate China Mobile shares upon any pull back. China Mobile has more than sufficient resources to back up this 4G development, and its solid cash flow will further be improved once 4G market starts to expand. China Mobile is one of the best telecom investment targets for the next 5-10 years.

The article Investing in 4G TD-LTE? This Telecom Is Destined to Prevail originally appeared on Fool.com and is written by Nick Chiu.

Nick Chiu has a long position in China Mobile. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and China Mobile. Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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