Cramer on Monday urged viewers to sell cell-phone firm NII Holdings, a company that is late to the 3G wireless-phone party. While the stock is up big over the past few months, he said, that move is over.
Both Cramer and Graham said that NII’s momentum has stalled out, pointing to overaggressive subscriber growth targets and an increase in customers leaving for competitors and the number of subscribers with unpaid bills.
NII operates in Mexico, Peru, Brazil, Chile and Argentina, and the pace of new customers in Argentina especially seems to have peaked. Plus, the rate at which customers left the company jumped 40% last quarter, while the percentage of people not paying their bills climbed to 2.8% from 1.9% year-over-year.