Zacks Industry Outlook Highlights: Tekelec, Kongzhong and China Mobile

For Immediate Release

Chicago, IL – May 27, 2009 – Zacks.com releases the latest Industry Outlook. Today's interview is with senior analyst David Weissman, who talks about the Telecom Industry, including Tekelec (TKLC - Analyst Report), Kongzhong (KONG - Snapshot Report) and China Mobile (CHL - Analyst Report).

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines. With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins.

This leads us to recommend selected net cash positive companies able to weather financial market volatility. Companies that match well with the aforementioned considerations include Tekelec (TKLC - Analyst Report), Kongzhong (KONG - Snapshot Report) and China Mobile (CHL - Analyst Report) These entities have significant cash and each has unique exposure to wireless and international business, along with strong balance sheet positions to sustain their expansion initiatives.

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