Stephen Rosenman

America Movil Benefits from Forex

Jordan,
Plot FXM and UUP over the last year. FXM is still down 28% versus UUP from last year. UUP has been trading down as buyers flee the dollar and move to any currency but. FXM's weakness was extraordinary, way oversold. That's why FXM improves versus the dollar.

Cramer Is Wrong: Why NII Holdings Is a Buy

Both AMX and NIHD have suffered largely because of unfavorable forex. The combination of an extraordinarily strong dollar and flimsy peso killed both of these companies over the last 2 quarters. AMX's growth was hidden beneath the forex pounding. Recent weakness in the dollar should allow AMX and NIHD stock prices to appreciate because their fundamental businesses are good. Zack's consensus for growth in NIHD seems to be very optimistic. Yahoo consensus puts estimates of 5 year growth at a little over 11% which would put the two companies on a similar trajectory.

America Movil Should Benefit from Peso Resurgence

Chris B: AMX has managed their business exceedingly well in a tough economy but has been brutalized by adverse forex. They got hit twice: first by exchanging profits into weak pesos and second by exchanging pesos into far stronger dollars for the ADR. That has changed which should make for a much stronger year. In this case, forex is critical. If forex problems had not occurred, that $14 billion dollar forex charge would have disappeared more than doubling their earnings.
Unfortunately, when I wrote the piece, the tables and graphs did not transfer over. You can see them under my instablog at Seeking Alpha.