Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.
John Christy, editor of the Forbes International Investment Report, chose Nokia Corp. (NYSE: NOK) as his favorite stock for 2007, which rose 39% as of 6/1/07. Here is his original recommendation for Nokia and his current opinion on the stock.
For his new favorite stock, the advisor looks south of the border, recommending América Móvil (NYSE: AMX). He explains, "Latin America has been one of the hottest regions for global investors in 2007. As of May 25, the Morgan Stanley Capital International Latin America index is up over 17% in U.S. dollar terms.
"But there's still plenty of money to be made south of the border. AMX is the dominant mobile phone service provider in Mexico. The company's reach extends beyond its home market to more than 125 million subscribers throughout Latin America, with operations in more than a dozen countries.
"Revenue topped $21 billion last year, about half of which came from outside Mexico. The company is controlled by Carlos Slim Helú, who overtook Warren Buffett earlier this year as the world's second-richest man.
"AMX reported a 28% jump in revenue in its most recent quarter, which ended March 31. Subscriber growth was solid across the board in the company's largest markets. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 50% compared with the same quarter a year earlier.
"Like many Latin American stocks, AMX has been a good performer this year. Its NYSE-listed shares are up almost 30% year-to-date. But AMX's valuation suggests that there is still plenty of upside.
"At a recent $58, AMX sells for less than 13 times analyst forecasts for 2008 earnings. And future earnings growth is expected to remain robust -- more than 20% next year. Part of the reason that AMX still has more upside is the relatively low rate of cell phone usage in Latin America.
"In Mexico, for example, only about half of the population uses a cell phone. But that penetration rate is climbing rapidly and AMX will be a prime beneficiary. AMX is also moving into a more profitable phase of growth.
"Margins have improved steadily in recent years and the company has cut its debt load. That means more future cash flow can be returned to shareholders in the form of stock buybacks and dividend hikes. For a solid, long-term play on Latin America's booming markets at a reasonable price, it's hard to find a better name than América Móvil."
See all 20 stocks the advisors picked for the second half of 2007.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
