America Movil: Promising Latin American Wireless Play

AMX also has a presence in 17 other countries in the Americas, and should have about 206 million wireless subscribers by mid 2010, up from 183 million at the end of 2008.

The First Call FY2010/FY2011 EPS estimates for AMX are $3.86 to $4.31. Each EPS estimate looks about 5% low, according to my analysis.

Technically, as noted, America Movil's shares, excluding the 'flash crash,' have endured the Dow's recent plunge in good shape, falling just $3 to about $50. As a result, the Dow's pull-back barely dented the uptrend.

2010 Outlook: I view America Movil as a long-term play, but if investors are looking to sell AMX within the year, it's probably best to take your profits after it rises to $58-59, if it fails to clear $60.

I'd also raise the sell/stop loss to $37 from $17, making this a zero-risk trade for your June 2009-bought shares.

Stock Analysis: I consider America Movil to be a moderate-risk stock. If an investor has already purchased the company's shares, I'd hold them. If not, I'd 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, I wouldn't buy more than 50% of my AMX position before August 2010 and I'd put a sell/stop loss at: $37.

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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.