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Friday, January 31, 2014

NII Holdings, Inc. Shares Jumping Again $NIHD $AAPL



What: Shares of NII Holdings, (NASDAQ: NIHD ) popped more than 21% Friday after the company announced a deal with Apple (NASDAQ: AAPL ) to bring both the iPhone 5s and iPhone 5c to its Nextel Brazil customers beginning Jan. 31, 2014. Apple shares were little changed following the news.Trade-Ideas LLC identified NII Holdings (NIHD) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified NII Holdings as such a stock due to the following factors:


■NIHD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.8 million.


So what: Merely being able to offer Apple's latest phones should go a long way toward helping consumers in Brazil to think of Nextel as a more promising mobile carrier -- especially as the company has struggled to profitably compete with larger rivals in the country.

This also mark's NII Holdings' second big jump since Monday, when it signed an agreement with Telefonica, which will provide wholesale voice and data services to both its Nextel Brazil and Nextel Mexico subsidiaries.NII Holdings, Inc., through its subsidiaries, provides wireless communication services under the Nextel brand name to businesses and individuals in Mexico, Brazil, Argentina, Peru, and Chile. Currently there are 7 analysts that rate NII Holdings a buy, 4 analysts rate it a sell, and none rate it a hold.

The average volume for NII Holdings has been 6.1 million shares per day over the past 30 days. NII has a market cap of $479.4 million and is part of the technology sector and telecommunications industry. The stock has a beta of 0.85 and a short float of 47.5% with 8.46 days to cover


Now what: Even so, NII Holdings stock still sits around 70% below its 52-week-high, leaving plenty of upside for investors if the company can manage to once again achieve sustained profitability. From a long-term perspective, I personally prefer to see more concrete evidence of its turnaround coming to fruition before I'd be willing to open a position myself. However, I can certainly understand shareholders' optimism in bidding up the stock today.
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