NIHD

NII Holdings Inc

TMT, Event Driven/Special Sit


Presented:03/01/2019
Price:$3.76
Cap:$0.38B
Current Price:$2.17
Cap:$0.22B

Presented

Date03/01/2019
Price$3.76
Market Cap$0.38B
Ent Value$0.78B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S100.87M
Ave Daily Vol1,095,409
Short Int14.34%

Current

Price$2.17
Market Cap$0.22B
NII Holdings, Inc. engages in the development and provision of wireless communication services. It offers mobile telephone voice, wireless data, push-to-talk services, business solutions, and voice and data roaming solutions. It operates through the Brazil segment. The company was founded in 1995 and is headquartered in Reston, VA.

Publicly traded companies mentioned herein: America Movil SAB de CV (AMXL MM; AMX), NII Holdings Inc (NIHD), Oi SA (OIBR3 BZ), Telecom Italia SpA/Milano (TIT IM), Telefonica SA (TEF SM), TIM Participacoes SA (TIMP3 BZ; TSU)

Highlights:

With shares of NII Holdings (NIHD; $3.80) trending lower, the presenter sees the risk/reward as favorable for a long position. The company’s main asset is a 70% stake in Nextel Brazil, the fifth largest wireless carrier in Brazil (with ~3.2MM subscribers concentrated in the attractive Sao Paulo and Rio markets). While fundamental trends (subscriber growth and +OIBDA) have been good recently, Nextel lacks the scale necessary to compete longer-term. However, the recent removal of spectrum caps by Anatel has, in the presenter’s opinion, increased the probability of one of the larger players in the market acquiring Nextel. Based on what he believes to be reasonable valuation estimates, TIM (Telecom Italia Mobile), Vivo, or Claro could easily pay anywhere from $6 - $12+ per share (stock value of NIHD) for Nextel Brazil over the next 6 – 12 months.

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