Out Fox The $treet

The below chart from finviz.com  is a great example of how charts can help fundamental investors. NII Holding (NIHD) is a leading wireless provider in Latin America building 3G networks in Brazil, Chile, Mexico, and Peru. The stock has been in a major downtrend since back in July. The original drop was in connection with the overall market drop, but the failure to rally the last few months was very frustrating to investors. All of a sudden though, NIHD broke out of the duldrums recently. Not surprising to technical analysts is that this move coincided with the break of the downtrend at the end of January. Then the stock broke the 20/50 moving averages in early February on a massive 10% up day. As typical of these moves, most long investors were shaken out in the long frustrating process. Now though is still a good time to jump in as the stock is only back even with November levels. The closing price of $23.78 is roughly half the July level. So if you believe in wireless data p...

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...