NII Holdings Reports 3Q17—Buying Time While Operations Struggle
NII Holdings reported a cash operating loss in 3Q, but only $22 million in net cash outflows (cash burn). We believe NII’s overall strategy to sell its highly valuable Brazil wireless spectrum and other assets to one of the other operators at a substantially higher price than the current share price implies. The company’s assets could be worth well north of $5/share. However, their stand-alone wireless business does not likely have much if any fundamental value, given their precarious operating position in a highly-competitive Brazilian market and their on-going cash burn. We consider an investment in NIHD shares to be speculative. Investors retaining their shares should be willing to accept potentially sizeable losses in exchange for the possibility of substantial upside. Investors not willing to accept this risk should exit their NIHD positions.Small Cap Telecommunication Services
Identify & Profit from Distressed Investing
Turnaround Investing Blog
Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached.
EV/EBITDA: What Is It & Why Are We Using It More?
In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple. We thought it might be useful to describe this measure and why we like it.
Turnaround Letter Stock Pick Named Top Performer of 2017
What Last Year's Top Stock Pickers Are Buying in 2018
This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.
George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."
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