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Investing Specialists

NII Holdings Rings Up Latin American Success

This growth stock trades in value territory.


This is a modified version of the Passport Portfolio section of the January 2009 Morningstar InternationalInvestor newsletter.

I am the strategist and editor of the Morningstar InternationalInvestor newsletter. The newsletter includes a live portfolio--the Passport Portfolio. From March 1, 2008, when the Passport Portfolio went live, through Dec. 12, the portfolio was down 17.4% versus the S&P 500's return of negative 32.6% and the Bank of New York Mellon ADR Index's return of negative 41.1%.

On Dec. 9 I visited the portfolio's second-largest holding,  NII Holdings (NIHD), along with Jacqueline Zhang--the analyst covering the firm. It was a very good visit and I came away more confident than before. NII was formerly Nextel International and was spun off from Nextel when the telecom bubble burst at the beginning of the decade. After emerging from bankruptcy the firm has found a very profitable niche selling push-to-talk wireless phone services to small and medium-sized businesses in Latin America. It has been particularly successful in Mexico and Brazil.

Allan C. Nichols does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.