Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Millicom Needs To Improve Margins To Unlock Value

The glory days of wireless service growth appear to be over. Most markets have at least three competing companies, and even those few remaining virgin markets have been demanding expensive concessions from operators. In the case of Millicom (OTCPK:MIICF), then, the question is whether or not the company can use better margins as a driver of shareholder value. Though the company has the opportunity to grow its cable and multi-play services in Latin America and benefit from underpenetration in Africa, management will likely find it easier to deliver incremental growth through cost containment.

A Leader In Smaller Markets

To a certain extent, Millicom has built its business by steering clear of the largest regional competitors in Latin America...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details