More Profits from South of the Border

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

This week’s pick — NII Holdings — is another Latin American cellular company, one that combines the region’s fast growth markets with the bonus of U.S. business savvy and branding.

Advertisement.

Formerly known as Nextel International, NII emerged from bankruptcy a few years ago after the telecom bubble burst. Based in Reston, Virginia, and listed on Nasdaq, NII offers wireless services under the Nextel brand throughout Latin America. It also has a regional strategic relationship with Motorola.

While its principal operations are in Argentina, Brazil, Mexico, and Peru, NII has recently expanded its wireless coverage by purchasing companies with analog-specialized mobile radio licenses in Chile.

NII’s potential in Latin America is huge. It has wireless licenses for 12 of the world’s 25 largest cities, covering markets with a total population of over 390 million people. That’s 35% larger than Nextel’s entire U.S. market, which is one of the reasons that NII has outperformed its parent by almost 2 to 1 over the last 12 months. It’s also on the verge of overtaking Nextel in terms of both top-line revenues and market capitalization.

Advertisement.

By some measures, NII is an even better value than America Movil. With a torrid 71.8% annual growth rate, NII has a price-to-earnings-growth ratio of just 0.5, compared with America Movil’s 1.31.

NII recently announced third-quarter earnings of 65 cents per share, more than double the year-before figure of 32 cents. It announced a two-for-one stock split for mid-November.

NII closed above $45 for the first time last Friday. In late October, Legg Mason put a target price equivalent to $62.50 on the stock ($125 prior to the stock split).

Exclusive  Should You Sell Nvidia (NVDA)?

So buy NII (ticker: NIHD) at market today, and put in a stop at $36.50. If you want to play options for quick and potentially higher profits, buy the March $45 options (QHQCI.X)

Advertisement.

Portfolio Update

The fourth quarter is traditionally strong for global stocks, and this year is proving no different.

Banco Bradesco (BBD) announced a two-for-one stock split on Friday. It’s up over 15% since we recommended it three weeks ago, so move your (adjusted) stop up to $28.40.

Sell your remaining America Movil (AMX) options for triple-digit gains. With the stock up more than 14%, adjust your stop up to $26.00.

Our China Mobile (CHL) options are up 42.50% in two weeks. But hold on for more profits and move your stop up on the stock to $22.50.

Advertisement.

Both Austrian market and Norwegian oils are both up this past week. Adjust your stops upward on the Austria iShares (EWO) to $25.40, and to $97.50 for Norsk Hydro (NHY).

share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE