AMX - America Movil ADR - BUY at 18-18.2

AMX - America Movil ADR

Report on 08/02/2022 media-holding (telecommunication)

Buy @18-18,2 (current level)
Take profit - 21.8
Stop loss - 16,6


The idea on Mexican mediaholding is mainly based on technical analysis. On weekly graph we are sitting on support line of upward channel. + RSI.

Fundamental data in general is ok, the company is constantly showing profit, also profit margins are lower than industry average. ROE, ROA, P/E is better than average. Level of debt is on decent level based on sector the holding operates in.

Among risks:
- currency risk. The holding is based in Mexico, therefore peso-dollar rate has a significant impact on financial performance;
- negative news. On January 27 local regulator denied sought-after license to enter the local pay TV market. But local media market leader won't stop at this point certainly and if not today, but in the nearest future will reach its goals, which will give a boost to share prices. Also the holding is the one which will implement 5G in Mexico.

So, all in all AMX is a strong holding and if not on the report, but in the mid-term perspective quiet uptrend should continue. P.S. Dividends are also regularly paid to the shareholders.
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