America Movil SAB de CV (NYSE:AMX) moving ahead in full steam despite legislation
Northern, WI 03/21/2013 (avauncer) - America Movil SAB de CV (NYSE:AMX) (Current: $19.79, Up by 3.99%) has risen the most in 10 months following and increase in share buybacks. The mobile-phone carrier is controlled by Carlos Slim the billionaire and its finance chief is optimistic about Mexican telecommunications legislation. The company is moving up its share purchase efforts after possibilities of a tough legislation in Mexico pulled the stock down to a four-year low. Since March, America Movil has acquired 526 million shares. This was when there was an announcement from lawmakers that competition will be boosted.
There has been a 17 percent dip in shares which has been a result of investor concern that the new legislation may give the government the power to break up the company. On the contrary, the company considers these new rules to be an opportunity to start offering television services for the very first time in Mexico said Garcia-Morena the Chief Executive Officer. The company considers the reform to be a very positive one as it gives the sector a much-needed impetus. America Movil SAB de CV (NYSE:AMX) is the largest wireless supplier by subscribers in the western hemisphere and it will be doubling its share buyback program from 39.2 billion pesos to 79.2 billion pesos which amounts to $6.4 billion.
Analysts have said that if they go ahead with the plan, it will be an impressive increase. The stock is very cheap and it is important for the company to cork the bleed. America Movil SAB de CV (NYSE:AMX) has 80 percent of Mexico’s’ landlines and 70 percent of its mobile phone-lines.