Opportunity Knocks- NIHD

Discussion in 'Stocks' started by stonedinvestor, Nov 2, 2007.

  1. Yowza and good day stock jockeys. As the title implies the SI Opportunity Knocks series highlights down and out, overly punished and misunderstood stocks.

    Our Entry today Brazilian cellular player NIHD. If you like big growth this stock has been a darling in the past, I regularly knew this up at $75 and saw nothing wrong with a $95 price target. There is HIGH growth here in Brazil. Ok so then it was quite a shock to see a big crooked number come in on this stock as they unluckily reported into a fragile market-

    The stock plummeted 19.8% after the Latin American digital wireless communications provider beat Wall Street's third-quarter outlook, but reported slowing subscriber growth. The company reported adjusted net income of $104 million, or 61 cents a share, on revenue of $853 million. Analysts were expecting earnings of 53 cents a share on revenue of $847 million.

    NII reported 327,000 net subscriber additions, bringing its total digital subscriber base to 4.4 million, up from 3.2 million this time last year. That's a little bit slower than expected -- NII blamed hurricanes in Mexico -- and the company acknowledged it "has some ground to make up" to reach its guidance of 1.275 million net subscriber additions for the year. The company's churn rate also increased to 1.6% from 1.5% in the year-ago period. Shares were losing $13.75 to $55.69.

    >> Alright BEAT the number BEAT on rev and due to the hurricane that hit a little off in new subscriber growth... but DOWN $13?

    >> On Halloween they took a big downgrade and didn't budge.

    >> On yesterday's down 400 day. It didn't budge.

    >> I bought today. It hasn't budged.

    This is a 2 qtr Hold for $78 and the stk is $58. That's $20 of stoney love. ~