Monday, July 28, 2014

Carlos Slim's telecom, 9 more stocks to watch

7/25/2014 3:30 AM ET

America Movil, the Mexican billionaire's massive phone empire, appears on StockScouter's latest list of 10 recommended stocks.

Compiled from StockScouter ratings by Verus Analytics

Throughout 2013 and the first half of this year, Mexican billionaire Carlos Slim watched his company’s stock – and with it, much of his personal fortune – languish in a state of uncertainty. Slim’s America Movil (AMX +0.55%, news) -- the largest telecom in the Americas, with 272 mobile subscribers – was a target of new antitrust regulations brewing in Mexico, where the company controls 70 percent of the mobile market and 80 percent of landlines. Investors feared harsh new restrictions would crush the company’s profitability.

Earlier this month, the saga came to a head as Mexico passed new telecom antitrust legislation punishing companies with over 50 percent market share. But rather than endure the penalties, Slim made an unexpected move: He announced plans to break up his company’s Mexican operations, spinning off several parts of the business and its wireless towers, to comply with the new rules.

Even more surprising, shares have leapt 14 percent since his decision to shrink the company. Some investors expect Slim to use the cash generated in such a sale – potentially around $4 billion -- to fund expansion into faster-growing markets such as Brazil, or to reward shareholders through dividends and share buybacks.

The recent rally in America Movil shares has helped Slim reclaim the title of world’s richest person, according to Forbes. 

Also on MSN Money: Billionaire Carlos Slim pushes for 3-day workweek

America Movil gets a '9' from the StockScouter rating system on MSN Money, where 10 is the highest score possible. Based on StockScouter’s analysis, shares of AMX are expected to significantly outperform the market over the next six months with less than average risk.

Read the full Scouter reports on America Movil here.


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