Latin America Stock with 100% upside potential
At Tactical Trading Academy we focused on delivering long term capital appreciation for stock investment. We look for deeply undervalued equity securities of companies that will benefit from the dynamic growth in today's economies.
Our investment approach is based upon buying stocks of good quality businesses at a substantial discount to their intrinsic value, and holding them over the long term. Capital preservation is our top priority and we insist on having a large margin of safety before investing in any company – in short, if we believe a stock is worth a dollar, we will not pay more than fifty cents for it.
Once a while we manage to find a stock that is worth two dollar but market is only pricing in one dollar. Hence there is potential 100% upside for this stock. Such opportunities exist because there are not much research coverage on the companies. Or they are not yet discovered by big investors or fund managers.
We manage to find one such stock lately: America Movil (AMX)
This company is a provider of wireless communications services in Latin America. The Company had an aggregate of approximately 3.8 million fixed lines in Central America and the Caribbean as of December 31, 2009. The Company's principal operations are in Mexico, Brazil, Southern Cone, Colombia and Panama, Andean Region, Central America, United States and Caribbean.
Warren Buffett looks for companies with consistent earnings growth. This company has almost consistent revenue and earnings growth for more than 10 years. You can see that in the revenue and earnings charts below (pointed by the arrows).
Sir John Templeton said "The time of maximum pessimism is the best time to buy". Long term support level formed at $46.00. Share price had dropped from $59 to $48 (down 18% from the peak), we believe that we are at or near to maximum pessimism.
Being confidence in oUr own analysis on the stock is not sufficient, we want to see fund managers putting money in this company.
The biggest shareholders are Capital Group, Blackrock Group, Morgan Stanley Investment and Invesco Ltd. Since the big boys are investors of the company, this gives us confidence that this stock is indeed worth investing.
Note: I was ranked top 1.5% in US stock pick competition and I am generating good income for myself from stock investment.
Market Strategist
Tactical Trading Academy
Website: http://TradingEducationProgram.org/
Email: metal.commodity@tradingeducationprogram.org
"The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price." – Warren Buffett
Our investment approach is based upon buying stocks of good quality businesses at a substantial discount to their intrinsic value, and holding them over the long term. Capital preservation is our top priority and we insist on having a large margin of safety before investing in any company – in short, if we believe a stock is worth a dollar, we will not pay more than fifty cents for it.
Once a while we manage to find a stock that is worth two dollar but market is only pricing in one dollar. Hence there is potential 100% upside for this stock. Such opportunities exist because there are not much research coverage on the companies. Or they are not yet discovered by big investors or fund managers.
We manage to find one such stock lately: America Movil (AMX)
This company is a provider of wireless communications services in Latin America. The Company had an aggregate of approximately 3.8 million fixed lines in Central America and the Caribbean as of December 31, 2009. The Company's principal operations are in Mexico, Brazil, Southern Cone, Colombia and Panama, Andean Region, Central America, United States and Caribbean.
Warren Buffett looks for companies with consistent earnings growth. This company has almost consistent revenue and earnings growth for more than 10 years. You can see that in the revenue and earnings charts below (pointed by the arrows).
Sir John Templeton said "The time of maximum pessimism is the best time to buy". Long term support level formed at $46.00. Share price had dropped from $59 to $48 (down 18% from the peak), we believe that we are at or near to maximum pessimism.
Being confidence in oUr own analysis on the stock is not sufficient, we want to see fund managers putting money in this company.
The biggest shareholders are Capital Group, Blackrock Group, Morgan Stanley Investment and Invesco Ltd. Since the big boys are investors of the company, this gives us confidence that this stock is indeed worth investing.
Note: I was ranked top 1.5% in US stock pick competition and I am generating good income for myself from stock investment.
Market Strategist
Tactical Trading Academy
Website: http://TradingEducationProgram.org/
Email: metal.commodity@tradingeducationprogram.org
"The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price." – Warren Buffett