America Movil S.A.B de C.V. (ADR) (NYSE:AMX)

TMFPlatoish (99.37) Submitted: 10/15/2006 11:35:53 AM : Start Price: $14.62 AMX Score: +46.98

America Movil is a large telecommunications service provider serving Mexico, Latin America, and South America. Their primary activities are in the wireless space. Although this is a large cap company, they are playing in a large, emerging market with lots of room to grow. They are continuing to grow revenue and earnings at better than 30% on an annual basis and in spite of the capital investment requirements inherent in a telecomm business, were able to generate $1.25B in free cash flow during their most recent fiscal year. With a market price of 20X earnings, I'm willing to bet that there is good price appreciation still to come. They should become a dominant long term telecomm player south of the border and turn into a cash generation machine, that will likely be returned to long term patient shareholders in the form of ever increasing dividends. This is a long term play on the development of Latin/South American economies and I believe it will outperform the market for years to come.