value play

0.54

NII Holdings (NIHD), which plunged from more than 90 in 2007 to a low near 29 recently, provides Nextel wireless services to businesses in Argentina, Brazil, Chile, Mexico and Peru. The shares have been hit by worries about the company's ability to handle 3G, or third-generation, services and the problems that have overwhelmed Sprint Nextel of late. Bay Resource remains a buyer, even though its average cost is 47 a share. "We believe that NII has a great management team that will keep the company growing," says Claugus. He thinks it's a bargain, trading at six times expected 2008 earnings before interest, taxes, depreciation and amortization, or Ebitda, and only 9.5 times projected 2008 earnings of $3.35 a share. NII Holdings "could easily double over the next three years," in his view.

Tim Seymour said the growth in emerging markets with regard to wireless greatly outdoes any revenue growth the domestic carriers will see. And because the technology tends to leapfrog itself, fixed-line telecom companies in the developing world could be on their last legs, making the wireless carriers even bigger players. NII Holdings (NIHD), China Mobile (CHL) and American Movil (AMX)should get the job done for the emerging markets wireless trade.

I recommend NII Holdings (NIHD), America Movil (AMX), Vimpel-Communications (VIP), and China Unicom (CHU), says Tim Seymour. I think it’s the best way to get exposure to the consumer, internationally.

The wireless company operating in Latin America announced a $500 million buyback plan (6% of the company’s market cap). The new plan replaces a previous $500 million plan which the company completed in 2007. On top of the buyback, NII named Steven Dussek as the new CEO, replacing Steve Shindler, who will remain NII's executive chairman.

Dussek comes from Dobson Communications where he served as President and CEO. There he led the company to expand operating margins to 39% from 32% and increased market cap from $400 million to $2.8 billion.

Steve Shindler, NII's Chairman and CEO, said, "Knowing and working with Steve over the past 20 years, I am confident that he will add energy, depth and strong leadership to our team as we pursue the numerous growth opportunities in our markets. Steve's success at Dobson and his experience and operating expertise in the wireless communications industry, and in particular his knowledge and expertise at NII Holdings both as one of our directors and previously as one of our executives, will be a great asset and an immediate benefit to all of NII's stakeholders."

NII will also report that net subscriber additions that surpassed expectations. In 2007 they added about 1,288,300 customers, representing a 38% jump in from 2006. NII now has a total of 4,728,600 subscribers, a 37% increase from last year.

Wachovia was impressed by NIHD's strong numbers and reiterated an outperform rating on the stock. They believe, "NIHD will show some of the best growth in the wireless industry over the next several years. NII's markets are much less penetrated than the U.S. and exhibit a more favorable competitive landscape." Wachovia sees NIHD trading between $81 and $90.

beaten down price

down 19% Oct 25
NII Holdings (NIHD) was plummeting 19.8% after the Latin American digital wireless communications provider beat Wall Street's third-quarter outlook, but reported slowing subscriber growth. The company reported adjusted net income of $104 million, or 61 cents a share, on revenue of $853 million. Analysts were expecting earnings of 53 cents a share on revenue of $847 million. NII reported 327,000 net subscriber additions, bringing its total digital subscriber base to 4.4 million, up from 3.2 million this time last year. That's a little bit slower than expected -- NII blamed hurricanes in Mexico -- and the company acknowledged it "has some ground to make up" to reach its guidance of 1.275 million net subscriber additions for the year. The company's churn rate also increased to 1.6% from 1.5% in the year-ago period.

The stock hit a 52-week low.

To report blow out EPS this coming week to to net adds hangin in there

NII Holdings (NIHD) was upgraded to Buy rating from Neutral at UBS. Price target and FY08 eps estimates hold at $85.00 and $3.01, respectively.

WASN'T DOING AS WELL AS I THOUGHT. SOLD AT SLIGHT PROFIT.