"This is a time for defensive measures, and one defensive stock idea is Telefonica (TEF); based in Madrid, Spain, Telefonica is a world telecom leader, with more than 280 million customers in 25 countries," notes Mark Skousen.

The editor of Forecasts & Strategies explains, "The company has a particular emphasis on Latin America. Telefonica offers landlines, cell phones and services, network leasing, cable and satellite television, and broadband services. It also is expanding rapidly in Asia in a partnership with China Unicom.

"Just four months ago, Europe was in an awful tailspin; but buying European stocks is exactly what I recommended," says Lou Basenese.

The contributing editor to Investment U explains, "Why? Because I'm a contrarian investor! And one of my favorite beaten-down stocks is Telefonica (TEF), the biggest telephone company in Spain.

"When the investing herd moves in unison, I always look for a reason to do the opposite. As long as the fundamentals warrant it, of course.

"Well managed, dominant firms use downturns to become more powerful -- and that's definitely what Telefonica (NYSE: TEF) is up to," says Roger Conrad in The Utility Forecaster.

"Incorporated in 1924 as a unit of US-based ITT, the Spain-based company now serves 47 million customers in its home country, 150 million in 14 Latin American nations and 45 million elsewhere in Europe.

"Thus far in the recession, diversity and dominance of fast-growing markets has kept Telefonica growing. Overall global customer rolls increased by 15.2% through the third quarter 2008.

Validea is a fascinating newsletter that assesses stocks based on the known criteria of "legendary" stock investors, such as Warren Buffett and Peter Lynch.

Here, editor John Reese reviews Telefonica (NYSE: TEF) -- a Spain-based telecom firm with operates in Europe and Latin America -- based on the strategy of quantitative analyst James O'Shaughnessy.

"James O'Shaughnessy has noted that 'disciplined implementation of active strategies is the key to performance.' He should know; his study of 44 years of stock market data is one of the most extensive ever of the market.

"The system he devised based on that research produced average back-tested returns of 22% per year for those 44 years. At times like these, it's more important than ever to heed his advice, and keep your emotions in check by focusing on fundamentals.

"Telefonica (NYSE: TEF), based in Madrid, Telefonica is involved in the communications, information, and entertainment arenas in Europe, Africa, and Latin America. The firm has a presence in more than 20 countries and more than 218 million customers.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"Banco Santander (NYSE: STD) is a 'swashbuckling Spaniard,'" jests Frida Ghitis, contributing editor for Global Investing.

In referring to her conservative favorite for 2008 she explains, "While the big ships of the financial industry struggled to weather a storm of their own creation in the credit markets, a solidly built craft sailed full speed ahead undeterred by the turbulence, proudly flying the Spanish flag into new and old markets.

"Banco Santander, which trades as an ADR in the US, apparently managed to tack clear of the siren call of easy subprime money in America. Instead, following in the tradition of the conquistadors, it went in search of new riches in the old world and the new.

"With branches in Europe, Africa, and the Americas, Grupo Santander has grown to become the largest bank in Europe by market capitalization, even as its competitors see their market cap wither during difficult times.