Technical Review on América Móvil and SK Telecom: Diversify Your Portfolio with International Telecom Stocks

Jan 25, 2013, 08:00 ET from

LONDON, January 25, 2013 /PRNewswire/ --

The telecom sector, while on the upward trajectory, is also fraught with intense rivalry. Cut-throat competition not only puts pressure on pricing, impacting the bottom-line in a negative way, but also leads to massive outlay to constantly upgrade infrastructure. Developed economies like the U.S. are also showing signs of saturation and in such a case, it makes sense for investors to look outward. Fundamentally strong stocks like America Movil S.A.B. de C.V. (NYSE: AMX) and SK Telecom Co. Ltd. (NYSE: SKM) can help achieve this target. While America Movil derives its revenue from Latin America, SK Telecom has concentrated its operations in South Korea. StockCall professionals have compiled a full detailed technical analysis on America Movil and SK Telecom, which can be viewed for free by signing up now at

Bank on Latin America with America Movil

América Móvil S.A.B. de C.V. [Free technical Report on AMX] (1) stock is under pressure lately and the things are not getting any better on the home front. One of its subsidiaries, Telmex recently received a setback as a Mexican court denied it approval to set up television network in the country. However, it has also consolidated its position by acquiring media and advertising business of Corporacion Interamericana de Entretenimiento SAB in a $131 million deal. The company is looking to expand its horizons in Pay TV business and also bought Net Servicos, a Pay TV company to gain foothold in Latin America.

Coming to the stock performance, America Movil, more or less, lagged behind the benchmark index. However, given the potential of the stock, the current market price offers a good opportunity to start long position. The company banks on the upward trend in telecommunication services in growing Latin American countries. Though, these countries tend to have lax legal situation, leading to inefficiencies, America Movil is expected to make the best of situation due to its long experience of operating in growing economies.

As of now, the U.S. forms a small part of America Movil's overall business as it derives more than half of its revenue from Mexico and Brazil. The stock is thus more prone to the macroeconomic factors in Latin America. Investors can look at this stock to provide international diversification to their portfolio. Despite challenging business environment in growing economies, the company has consistently reported growth in revenue.

4G Boom to Aid SK Telecom

SK Telecom Co. Ltd. is another contender to add international touch to a portfolio. The South Korean company provides telecommunication services in its home country. It lacks the scale of America Movil and also seems to be buckling under pressure. SK Telecom reported deep decline in its profits for the third quarter and its financial position looks to remain strained. While the stock performed relatively well in the past 12 months, the underlying fundamentals are open to question.

SK Telecom is looking to boost its LTE services and ended 2012 with over 7 million LTE subscribers. The telecom company plans to double the number in 2013. Despite the upbeat news, the stock saw prominent hedge funds like TradeWinds Global Investors and International Value Advisors reduced their holding in the company. However, it saw net purchase of 173 million shares by institutional investors in the past quarter. One can look at this stock for building a long-term position as it offers very healthy dividend yield of about 5 percent. Our full technical analysis on SK Telecom is available at


  1. América Móvil S.A.B. de C.V. Technical Analysis [ ]

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