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

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

  PR Newswire

  LONDON, January 25, 2013

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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