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The reason we are investing in AMX is to help reduce our exposure to China. We suffered major losses due to their market crash today, which outlined our need to diversify more globally. Furthermore, we do not have a lot of assets in Latin America right now. We believe AMX is a good investment because it is in a relatively safe industry (telecommunications) and is one of the largest providers in the world. Currently, many Latin American companies offer a pay as you go plan or prepaid plans for smartphones, but as demand for contracts increases, it's likely AMX will be one of the first players to adopt this.
America Movil is a telecommunications company based in Mexico, with exposure to Latin America and the Caribbean. 17 analysts offering 12-month price forecasts for the company have a median target of 19.86, with a high estimate of 25.53 and a low estimate of 15.57. The median estimate represents a +11.86% increase over the current price. Our position in AMX reflects our thesis of digitization in Emerging Markets, since it stands to benefit from increased demand for mobile internet access.
América Móvil is a Mexican telecommunications company and is the seventh largest such corporation in the world, owned by the Slim family. Its largest and most prominent subsidiary is Telcel in the Mexican market, while Claro is the brand that operates throughout the Caribbean and Latin America. Yahoo recently reported that América Móvil has a "long-term earnings growth expectation of 24.3%, having delivered an earnings surprise of 5.7%, on average, in the trailing four quarters." We expect this trend to continue and think that this stock is relatively less risky than several other Mexican investments, with a beta of 0.30, according to YahooFinance. The company's multinational holdings across Latin America also increases exposure to a number of countries, with recent expansions and acquisitions in Chile, among other countries.
America Movil is the leading mobil service provider in Latin America. The company already has over 276 million subscribers with many opportunities for growth. Additionally, this stock adds some stability and diversity to our portfolio as it is not too correlated with the S&P. The company's beta with the S&P is 0.21