| By PR Newswire | Article Rating: |
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| February 12, 2013 08:02 AM EST |
LONDON, February 12, 2013 /PRNewswire/ --
The telecom sector features immense competition, along with heavy capital expenditure and capacity build up. Due to these constraints, only companies with excellence managed to survive. Competition may take its toll on any company as evidenced by NII Holdings Inc. (NASDAQ: NIHD) which is constantly losing its market value. On the other hand, companies like Vodafone Group plc (NYSE: VOD) has managed to stay afloat despite facing similar issues. StockCall reviewed the solar industry and chose NII Holdings and Vodafone for its technical coverage. These free reports can be seen for free at
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NII Holdings Faces Stiff Competition
NII Holdings Inc. stock is down 15 percent this year so far. The main catalyst behind the downward trajectory is the company's recent announcement of its feeble outlook for FY2013. NII Holdings expects its 2013 revenue to be in the range of $5.7 billion and $5.9 billion, lagging behind the market estimates of $6.1 billion in annual revenue. It expects its OIBDA in the range of $600 million and $650 million. Download the free research on NII Holdings by signing up now at
http://www.StockCall.com/NIHD021213.pdf
The company is mainly active in Brazil and sees stiff competition from telecom giants like America Movil and Telefonica. Despite its collaboration with Sprint to represent Nextel brand in Latin America, the company is struggling to gain market share.
Other maladies affecting the company are its lower revenue per user, which directly affects its margins. NII Holdings also plans to go ahead with its 3G installation program. However, its rivals like America Movil are already working on LTE infrastructure. Launch of 3G services is also expected to put additional burden on the company's strained finances, and it is looking to spend about a $1 billion on capital expansion this year.
However, the company plans to sell bonds to bridge the gap between funds and its capital expenditures. NII Holdings lost about three quarters of its market value in the past 12 months and the stock is trading near its 52-week low. The company expects its customer-base to grow at 'mid-single digit' rate during the year and it may have some positive impact on its stock price. If the company is able to fix its low ARPU problem, we may see some upward movement in the stock.
Vodafone Provides Healthy Outlook
Vodafone Group recently announced better-than-expected quarterly results. However, its revenue for the third quarter of the year fell 2.2 percent to $18.29 billion. While its revenue in Northern and Central Europe increased, it saw a downfall in revenue from Africa, Asia/Pacific and Southern Europe. It also lost subscribers in Europe. The company is also under pricing pressure. Register for today's free analysis on Vodafone at
http://www.StockCall.com/VOD021213.pdf
However, Vodafone is planning to upgrade its offerings and infrastructure. The stock has grown 8 percent in the year so far and it offers good dividend yield of 3.75 percent. The company is also optimistic about its future performance as it upgraded its guidance for FY 2014. Vodafone offers a good investment opportunity, thanks to its capital appreciation, dividend payment and generous share buyback program.
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SOURCE StockCall.com
Published February 12, 2013
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