7/25/2014 3:30 AM ET
Carlos Slim's telecom, 9 more stocks to watch
America Movil, the Mexican billionaire's massive phone empire, appears on StockScouter's latest list of 10 recommended stocks.
Compiled from StockScouter ratings by Verus Analytics
Throughout 2013 and the first half of this year, Mexican billionaire Carlos Slim watched his company’s stock – and with it, much of his personal fortune – languish in a state of uncertainty. Slim’s America Movil (AMX) -- the largest telecom in the Americas, with 272 mobile subscribers – was a target of new antitrust regulations brewing in Mexico, where the company controls 70 percent of the mobile market and 80 percent of landlines. Investors feared harsh new restrictions would crush the company’s profitability.
Earlier this month, the saga came to a head as Mexico passed new telecom antitrust legislation punishing companies with over 50 percent market share. But rather than endure the penalties, Slim made an unexpected move: He announced plans to break up his company’s Mexican operations, spinning off several parts of the business and its wireless towers, to comply with the new rules.
Even more surprising, shares have leapt 14 percent since his decision to shrink the company. Some investors expect Slim to use the cash generated in such a sale – potentially around $4 billion -- to fund expansion into faster-growing markets such as Brazil, or to reward shareholders through dividends and share buybacks.
The recent rally in America Movil shares has helped Slim reclaim the title of world’s richest person, according to Forbes.
- Also on MSN Money: Billionaire Carlos Slim pushes for 3-day workweek
America Movil gets a '9' from the StockScouter rating system on MSN Money, where 10 is the highest score possible. Based on StockScouter’s analysis, shares of AMX are expected to significantly outperform the market over the next six months with less than average risk.
Read the full Scouter reports on America Movil here.
StockScouter Top 10 for July 25
Bed Bath & Beyond (BBBY)
Time Warner (TWX)
Oil and gas
Home Depot (HD)
|Home improvement retailer||2.3%||16.0||9|
America Movil (AMX)
21st Century Fox (FOXA)
Kodiak Oil & Gas (KOG)
Oil and gas
Southwest Airlines (LUV)
Skyworks Solutions (SWKS)
StockScouter beats the market
We think the StockScouter rating system developed by Verus Analytics for MSN Money is one of the best tools you can use when you're trying to decide where to invest.
StockScouter looks for stocks whose business fundamentals, price behavior, valuation and stock-ownership characteristics appear to predict a rising price in the future, based on how those factors have influenced stock prices in the past.
The system assigns each stock an expected six-month return and balances that return against the stock's expected volatility.
Scouter rates stocks on a scale of 1 to 10, and ratings can change daily. Ratings and data in the chart above were current as of this article's publication date.
In addition to the daily top 10 list described above, StockScouter is used by investment research firm Verus Analytics (previously known as the quantitative business unit of Gradient Analytics) to generate a monthly benchmark portfolio of stocks that, refreshed monthly, has outperformed the market since its inception in August 2001.
An investor who began in 2001 by investing in each of the benchmark portfolio's top 10 stocks at the start of the month, selling them at the end of the month and then starting fresh with a new group of 10 stocks, would have generated returns, before trading costs and taxes, of 1,084 percent through June 30, 2014.
Writer Jon Markman, at the time a columnist for MSN Money, collaborated with company researchers on the tool.
Markman suggested rolling over the top 10 stocks every six months to hold down trading costs, a strategy that might be a better fit for most investors; that would yield different results, which would vary based on your starting point.
Performance through June 30, 2014
Full 50 position portfolio
Top 10 portfolio
Inception: August 2001
VIDEO ON MSN MONEY
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Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
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