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  • NII Holdings: Spin Tower Assets Off Tax-Free As REIT; Short Interest Rises 7 comments
    Jul 25, 2013 8:39 AM | about stocks: NIHD, GOOG, AMT

    As expressed before as ripe for Google (GOOG), NII Holdings (NIHD) has a large portfolio of tower assets which it has announced it is desirous of selling to a larger operator of tower assets. As an alternative, we think it may be wise to investigate whether it can use one of its subsidiaries as a vehicle to transfer these tower assets to and then spin off on a tax free basis to its shareholders. This may double its current share value as these assets are recognized in NIHD's current share price. These assets may be of strategic value to prospective shareholders of NIHD who do not want to be in the regulated business of wireless telecom, i.e. American Tower (AMT), but are interested in wireless and broadband communication infrastructure. The towers represent a growing business opportunity in its own right, especially in the emerging Lat Am NIHD territories.

    Here is a snapshot of the 3.5 million increase in outstanding short position in NIHD as reported on July 24th:

    Disclosure: I am long NIHD.

    Stocks: NIHD, GOOG, AMT
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Comments (7)
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  • Author’s reply » $S up despite dismal quarter
    $NIHD down pre earnings dismal quarter already priced in
    30 Jul 2013, 02:41 PM Reply Like
  • Author’s reply » $NIHD just the mention of contemplation of the spin-off of towers will put a surge into the stock as short sellers would have to compensate for the holder of their borrowed stock the shares from the spin-off, just like paying the dividend to the holder
    30 Jul 2013, 02:45 PM Reply Like
  • Author’s reply » $AMT just stated in their conference call their commitment to growth internationally. They also stated that regulatory issues in Brazil and Mexico were making it togher to construct new towers. This creates scarcity, this only helps $NIHD especially if it spins this asset off!
    31 Jul 2013, 09:54 AM Reply Like
  • Author’s reply » $NIHD Spin-off an be discussed as soon as tomorrow's confrence call, especially if an analyst asks the question of its possibilty
    31 Jul 2013, 10:20 AM Reply Like
  • Author’s reply » $NIHD tower spin could be worth $4-$6 per share as tax free dividend
    31 Jul 2013, 10:27 AM Reply Like
  • Author’s reply » $AMT CEO "In both Mexico and Brazil, mobile data is still early in the adoption phase, while smartphone penetration in both markets was just 15% at the end of 2012. It did grow rapidly, though, at a 67 per year annual pace. Also, RPU driven by data is approximately 23% for Brazil and 37% for Mexico, compared to the U.S. at just over 40%.

     

    This signals that demand for more complex wireless services and sophisticated handsets is increasing as markets move down the technology curve over time. We fully expect that this trend will result in robust and long term leasing activity across our asset base in Latin America and elsewhere around the world."
    31 Jul 2013, 12:19 PM Reply Like
  • Author’s reply » $NIHD needs to hold these assets and spin to shareholders
    31 Jul 2013, 12:20 PM Reply Like
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