Stock to Sell #1 – America Movil S.A.B. de C.V. (AMX)
Mexican-based wireless communications giant, America Movil S.A.B. de C.V. (NYSE:AMX), has had a series of years with flat earnings. And analysts continue to project slow growth for the foreseeable future due to increasing competition in Latin America and Mexican legislation that could place restrictions on the company’s future growth prospects.
The stock had a reaction rally in March following a dramatic breakdown at $22.50 from a descending triangle when it plunged to $18.26. Note the death cross (50-day moving average crosses under 200-day moving average), a long-term bearish signal in November. Resistance is now at its 50-day moving average at $22.37.
Sell AMX at the market if you own it. Traders should place sell-short orders at $21 with a stop-loss at $24. The downside target for AMX could be under $15. Short-selling is highly speculative and not appropriate for every investor. Please consult your broker as to the ability to borrow shares and any other restrictions that may apply.