Out Fox The $treet

NII Holdings (NIHD) is a leading provider of mobile communications for business customers in Latin America with main operations in Brazil and Mexico. Its the operations in these two countries plus the plans to deploy 3G services in the near term in these countries that derive the main investing theme. The stock is up some 7% today on strong results and news that subscribers have passed 9M and expect to approach 11M by the end of 2011. While the numbers were good and guidance for 2011 solid, NIHD remains a emerging market investment and hence the stock performance will largely be derived from how the sector performs and whether Latin America remains a high growth area with soaring inflation. As far as Q4 results, NIHD seems to right inline with expectations when stripping out a $17M charge relating to prepaid Value Added Taxes. Need to listen to the conference call to see if something was said to warrant the 7% jump. All in all, the company trades at a low valuation with expected re...

NII Holdings (NIHD) is a recent addition to the Opportunistic Long Only portfolio and on Tuesday they announced the winning of 3G licenses in Brazil that covers the majority of the population. This comes after recently winning such licenses back in October in Mexico as well. Considering the costs of $715M to buy the Brazil license and several billion to build it out, the major issue is whether they'll have the cash to fund this massive expansion. NIHD is a leading wireless provider in Latin America and a major force in the important markets of Brazil and Mexico. They currently have over 3M subscribers in both markets along with a total of 8.6M subscribers when adding in Argentina, Chile, and Peru. 2012 will be a massive year as they begin implementing the 3G networks in Brazil and Mexico, but that leaves 2011 as a year of major capital expenditures for a company with $544M in net debt. Considering they have $2.4B in consolidated cash and investments they likely will find an aff...