Boston, MA 02/14/2013 (wallstreetpr) –The wealthiest man on the globe, Carlos Slim lost $3.8 billion of his net worth when the shares of Mexico based wireless communications company, America Movil SAB de CV plummeted by over 11%, in last two days. Due to the slow rate of economic growth in Mexico constrained revenues the company said.
The amount is just a “drop in the bucket” for the billionaire but considering the magnitude of market cap “lopped off “America Movil SAB de CV is no more a success at least in the “near term” said Christopher King who is an analyst at the Stifel Financial Corp (NYSE:SF)’s subsidiary Nicolaus & Co.
The shares had the biggest plunge since 2008 at the market close yesterday, causing the IPC index’s decline by 1.7% . The company is a large component of that index.
The company’s wireless telephony sales in Mexico plunged by 3% in the 4th quarter of 2012 , Daniel Hajj, Chief Executive Officer of the company disclosed yesterday over a conference call. Amid the nose diving slump in the Mexican market, America Movil L (FRA:MV9)’s largest market, it was forced to move into another region but most of its overseas expansion reaped non-consistent results. The market value of an investment in the Netherlands based Royal KPN NV also declined.
King has extended a “hold” rating for the stock. Declining margins for the Latin America’s largest mobile phone operator which holds “monopolistic status in Mexico and Colombia”, is a red alert for the industry on the whole, he says. “If they can’t hold up their margins, no one else really has a chance”.
Slim’s net wealth is over $7 billion more than that of Bill Gates the owner and founder of Microsoft Corporation (NASDAQ:MSFT). The two tycoons are currently collaborating for the agricultural research in Mexico. Slim has made a charitable donation of $2 million in the state led MasAgro plan, that will decrease the country’s reliance on imported grain.
ADRs of America Movil SAB trade on the NYSE and the NASDAQ exchanges in the US. Yesterday,
The America Movil SAB SAB de CV ADR (NYSE:AMX) was down by 1.66% to close at $21.98 while America Movil SAB SAB de CV (ADR) (NASDAQ:AMOV) was down by 1.38% to close at $21.98. The Stifel Financial Corp (NYSE:SF) shares were up by 1.37% to close at $39.25.
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