Sunday, May 2, 2010

NII holdings (NIHD:NASDAQ)

This company provides provides wireless communication services to businesses and individuals primarily in Mexico, Brazil, Argentina, Peru, and Chile. Its services include mobile telephone services comprising various calling features, such as speakerphone, conference calling, voice-mail, call forwarding, and additional line service; and Nextel Direct Connect service, which allows subscribers anywhere on its network to talk to each other on a push-to-talk basis, private one-to-one call, or on a group call. The company also offers International Direct Connect service, which allows subscribers to communicate with its subscribers in Mexico, Brazil, Argentina, Peru, Chile, the United States, and Canada. In addition, it provides various services, such as text messaging; mobile Internet; e-mail services; location-based services, which include the use of global positioning system technologies, digital media services, and Java enabled business applications; and international roaming services. Further, the company offers two-way radio service. NII Holdings, Inc. provides its products and services under the Nextel brand name. The company sells its products and services through direct sales representatives, indirect sales agents, telesales, Nextel retail stores, shopping center kiosks, and Web site. It was formerly known as Nextel International, Inc. and changed its name to NII Holdings, Inc. in December 2001. The company was founded in 1995 and is based in Reston, Virginia.

During the first quarter of 2010, the Company added 377,000 net subscribers to its network, bringing its ending subscriber base to over 7.7 million, a 20% increase in the ending subscriber base compared to the end of the first quarter of 2009. Financial results for the quarter included consolidated operating revenues of $1.28 billion, a 33% increase compared to the first quarter of 2009, and consolidated OIBDA of $341 million for the quarter, a 39% increase compared to the same period last year.

The Company continued to invest in the expansion of the coverage and capacity of its networks reporting consolidated first quarter 2010 capital expenditures of $134 million, of which $85 million was invested in Brazil.

The Company ended the quarter with approximately $3.52 billion in total long-term debt and $2.7 billion in consolidated cash and short term investments, resulting in net debt at the end of the quarter of $841 million.

In 2005, the EPS was 1.06 and the stock price 46. Today, with an EPS of 2.26, it is at 42.47. 

Price / Book value = 2.5 /// Average 2002 - 2009 = 4.56
Price / Cash Flow = 8.6 /// Average 2002 - 2009 = 13.56

I would wait a pullback to go long.


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