Skip to main content

NII Holdings - still plenty of opportunity

I have written previously on NII Holdings (NIHD) in a post titled "NII Holdings bounces off bottom - can it keep up the momentum?" The company sells Nextel-branded cell phone service in Latin America including Brazil.

The company recently reiterated that it sees no slowdown in sales and the stock responded by continuing to climb.

In an article entitled "1.2 Billion Mobile Subscribers!", eMarketer discusses how cell phone use is growing in the BRIC countries (Brazil, Russia, India and China).

The article says that cell phones are increasingly the primary on-ramp to the Internet for users in these countries. From a marketing standpoint, the Internet companies with solid mobile offerings will benefit. Yahoo! (YHOO) has made a point of focusing on mobile perhaps even more than Google (GOOG) has. We will see the two companies continue their rivalry on cell phones and maybe there will be an opportunity for Yahoo! to gain some ground.

Getting back to NII Holdings, however, the article provides some positive macro background that supports NIHD's contention that growth remains on track. In Brazil, mobile phone penetration has reached 73% of the population but only 5.1% of mobile phone users access the Internet via their phone. This indicates plenty of room for growth, in terms of new users and especially in terms of up-selling existing users to more comprehensive service plans and higher end phones.

The outlook for NIHD remains positive and, with the stock trading just above its 200-day moving average, it may not be too late to take a position.

Sources: 1.2 Billion Mobile Subscribers!

Disclosure: author is long NIHD at time of writing

Comments

Popular posts from this blog

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. (Click here to read the original post)

There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position.

This first post in the series starts at the beginning: getting good investment ideas.

Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets.

As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professionals and …

Unlock Stock Market Profits - Key #4

This is the fourth article in a series of posts describing 10 tools to help you identify and evaluate good investing ideas. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. (Click here to read the original post)

With this fourth post, we will continue another step along the path of finding stocks that seem to have some potential. The first post in the series discussed how to use unusual activity to identify investing ideas. The second post described how to use stock screeners. The third post described how to use lists of new highs and new lows. This post will focus on identifying social or business trends in order to find investing ideas.

Information on new trends might turn up anywhere. In conversation with friends or business associates, in newspapers or magazines, on TV or though your work. The key is to be aware of trends and how they start, stop or change. We'll start by describing what to lo…

Durable Goods report for Sept just so-so but Computer segment is on fire

The Durable Goods advanced report for September 2011 was released on Wednesday.

I like to dig into the Durable Goods report because it can be useful for seeing how tech in aggregate is performing and how the sector may perform in the future. I always focus on two particular measures: shipments and new orders. Let's see how it played out last month.

Shipments -- 

I generally give less importance to Shipments since this is a backward looking measure reflecting orders that have been confirmed, manufactured and shipped. It's similar to earnings reports -- it's good to know but the data is in the past and we're more interested in the future. The following chart shows how September shipments looked for the overall tech sector:


Results for the overall tech sector were a bit weak but take a look at the next chart which tracks the Computers and related products segment:


Results here were actually quite good and, to make things even better, the previous month was revised upward.

N…