Why Bulls Are Betting on This Beaten Telecom Stock
"Fast Money" Contributor
America Movil has been plunging on concerns about competition and growth, but some buyers were hoping to catch a bargain yesterday.
The company reported 12 percent subscriber growth earlier this month, but earnings were well below consensus. Despite being the biggest telecom carrier in Latin America, rivals are taking away its fixed-line customers and regulatory issues might limit its financials in the near term.
That's driven the stock from $57 to below $50, and yesterday it fell another 1.45 percent to close at $49.56. (See ticker for today's quotes.)
But then upside option activity kicked in, with the purchase of a few large blocks of August 52.50 calls for $1. More than 4,800 traded against open interest of 1,161 contracts, according to OptionMonster's tracking systems.
Overall option volume in the stock was about 12,800, compared with about 3,000 in a typical session.
Pete Najarian has no positions in AMX.
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