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

Madmykl (99.31) Submitted: 5/11/2007 9:01:27 PM : Start Price: $20.23 AMX Score: +17.81

This really is my favorite stock in my portfolio at the moment.

AMX is a HUGE mexican company, owned by the second richest guy in the world. Its day-to-day operations are already run by his sons, however, so if something happened to him the show would go on (unlike many of the other big companies out there like Apple who's destiny lies with its CEO).

American Movil is like a microsoft or ford for the US. Now... consider this: its growing like a small company 30% estimated yearly growth for the next 5 years.

Thats right... many people in south and central america do not have phones at all, and pay as you go and subscription cell phones are taking over in place of land-lines. Additionally, the population of central and south america is booming. AMX is positioned to capture the bulk of this growth in several countries, and its making bids on many different companies that have been unloading their positions in the telecommunications markets in central and south america. I dont see them diversifying beyond their scope of expertise, but they are growing in a smart sustainable way on several fronts.

All this said, they are trading at a PEG of about 0.5 (i.e. a half-off sale). It is just a matter of time before they start getting some more attention from big money investors and their price will bid up. A 5-fold increase over the next 5 years would not surprise me in the least.

So here it is... a safe, large company, growing in a fast but sustainable manner, the owner has billions of his own dollars in the company, and its priced about half of what your average ho-hum 30% growth company should be.

good stuff.