Double-digit subscriber growth means good things for America Movil SAB de CV (NYSE: AMX), hence I'm Reiterating my Buy rating for the company, first recommended on June 24, 2009 at a price of $36.47. If you purchased AMX in June, you're up about 30%.America, is another one of those large caps that was rudely treated by Wall Street, which took shares down to about $25 from the mid-$60s in FY2008. That was a mistake, because all the while AMX, the largest wireless service provider in Latin America, has been expanding its presence in two important emerging markets: Brazil and Mexico. AMX also has a presence in 17 other countries in the Americas, and should have about 200 million subscribers by the end of 2009, up from 183 million at the end of 2008.
The First Call FY2009/FY2010 EPS estimates for AMX are $3.34 to $3.80.
Technically, America Movil's stock chart is strong: an uptrend, with only minor, constructive corrections, and the stock has only briefly breached the 50-day moving average. There will be psychological resistance at $50, but this will be minor, given the company's growth prospects. More-cautious investors, however, should wait until AMX closely above $50 for three straight days.
Stock Analysis: America Movil SAB de CV is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in AMX now; then buy another 25% in one month, if Latin American economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your AMX position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $17.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
Technically, America Movil's stock chart is strong: an uptrend, with only minor, constructive corrections, and the stock has only briefly breached the 50-day moving average. There will be psychological resistance at $50, but this will be minor, given the company's growth prospects. More-cautious investors, however, should wait until AMX closely above $50 for three straight days.
Stock Analysis: America Movil SAB de CV is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in AMX now; then buy another 25% in one month, if Latin American economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your AMX position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $17.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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