America Movil S.A.B de C.V. (ADR) (AMX)
The Company is a provider of wireless communication services in Latin America based on subscribers.
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For those of you not in AMX yet... This is a really good time to buy a really good stock.
About a month ago they plummeted because of a missed earnings report. Lots of people got unnecessarily scared and got out, giving a solid price. Well, they missed that earnings report because they are upgrading their networks. This is a good thing. At this point, they should have a more powerful wireless EDGE network than AT&T or Verizon... And with all these talks of an iPhone startup, that would mean exclusive rights to sell a hot phone in a hot market, with probably the best wireless internet network in the world.
Plus, they're a big stable company with solid growth and a lot of untapped customer potential. Check it out!
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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.
Recs
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.
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Even those riding donkeys in Mexico & LA are using cell phones where service is available. Land line service is very expensive and difficult to obtain. Much room for expansion of service area.
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What I like:
-A great sector in an even better place, latin america.
-Nice high net margin (19%) with a good relative strength 87
-5 yr earnings at 28.4% (this could be a 3 or 4 bagger if you held it long enough)
What I dont like:
-its a large cap, its not gonna be a 100 bagger.
-the EPS even though its growing is still pretty low. this is definitely a growth buy and not an assey play.
Overall. Good stock.Theres lots of room for growth here. If you like wireless comm. in latin america another winner i like a little more is NIHD. Booyah!
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Excellent, consistent growth in sales, net income, EPS and dividends. Being the largest wireless provider in Latin American is a good place to be. 70% market share will be tough on competition for the foreseeable future.
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This one is easy money.
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Carlos Slim's baby looks like a solid "head and shoulder" pattern. Watch for the bottom to fall out of this one.
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This stock is SO undervalued relative to its prospects that its a certain thing the price will ultimately go up. Releasing the I-phone in Mexico doesn't hurt either. I just visited and saw plenty. Another opportunity the rascist market gives us... This was a bargain at 45.
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AMX controls the wireless markets in Latin America and as long as socialist governments do not nationalize their telecom, this stock should continue to grow as this market is huge due to population and that the current subscription base is roughly larger than Cingular.
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The product's popularity will not ebb, and Movil has enough of a foothold to successfully compete against larger suppliers when they attempt to enter (late) into the Latin market in a big way.
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Cell phones in latin america are big business... Add to this a company that is very very underpriced, has great growth prospects, and lead by folks that know what they're doing. A long-run no brainer.
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Great mobile communications company that has been around a few years and serves various Central and South American countries. While based in Mexico, AMX has been sure to not let physical borders limit it's growth. Overall, this is definately a stock to watch; after all not many other mobile communications companies can say they cater to the growing Latin America market as America Movil...
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America Moviles is still undervalued considering the free cashflow it is generating and LAM economies are doing better than expected.
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I love cell phone companies, they are even a bigger rip-off for the consumer than land line phone companies. Good buy even at high 30's.
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Earnings Per Share (EPS) Rating 96
Relative Price Strength (RS) Rating 91
Industry Group Relative Strength (Grp RS) Rating A-
Sales + Profit Margins + ROE (SMR) Rating A
Accumulation/ Distribution (Acc/Dis) Rating B+
Recs
Calling America Movil a Mexican cellular giant isn't giving the company nearly enough credit, since it's a force to be reckoned with throughout Latin America. The largest chunk of its 186.6 million subscribers is in Mexico, but its customer count also includes 40 million Brazilians, 27 million Columbians, and 17 million subscribers from Argentina, Paraguay, and Uruguay. Heck, the company even has nearly 12 million customers in the U.S.
Mexico had been taking its lumps even before the flu scare, but Latin America in general is one of the favored regions of the world when it comes to growth potential. And while there are a lot of things that come with strong economic growth, one trend in particular that seems to play out all over the world is a growing base of cellular subscribers. And that is true whether you're America Movil in Latin America, Turkcell in Turkey, or China Mobile in China.
http://www.fool.com/investing/international/2009/05/05/5-all-star-stocks-on-fire.aspx
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AMX will dominate latin american market - advantageous for those who do business throughout the region. I think the only latino country where they don't have access is Panama, probably because Panama is one of the only places that uses GSM 850.
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easy. powerful company. go richer dude
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Great company at a pretty good price right now. Good to buy at around $45 or less.

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