The last year has been a challenging one for America Movil (AMX).
While profits are improving in the Brazilian operations, a softer
Mexican economy impacted results as regulators increasingly look to clip
America Movil's wings. A recent decision to assume operating control of
Telekom Austria (OTCPK:TKAGY)
is not at all surprising, but the company has yet to clearly outline
the value proposition for expansion into Europe as opposed to other
Latin American markets. All told, America Movil is likely undervalued
today on the basis of is long-term cash flow generation potential, but
the company will likely have to show that it can deal with the new
regulatory system in Mexico and extract value from Telekom before the
Street gives it the full benefit of the doubt.
Follow the link to continue:
America Movil Going Global In A Search For Value
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