Does selling NII Holdings Inc. (NASDAQ:NIHD) in order?

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NII Holdings Inc. provides differentiated mobile communication services for businesses and consumers under the Nextel brand primarily in Brazil and Argentina. The company’s wireless communications tools consists of digital cellular voice services, data services, wireless Internet access and Nextel Direct Connect(R) as well as International Direct Connect SM, a digital two-way radio. NII Holdings Inc. is based in Reston, Virginia.

NII Holdings, Inc. (NASDAQ:NIHD) has been in the news for all the right reasons. Recently, NII Holdings, Inc. (NASDAQ:NIHD) announced that Roberto Rittes has been appointed as Nextel Brazil’s new CEO. Mr. Rittes, 43, brings over a decade of senior level experience, having served as a key officer for Brazilian telecom companies Brasil Telecom and Oi Paggo. Most recently, Mr. Rittes was a principal at H.I.G. Capital, a leading global private equity investment firm, from 2016 to 2017. Mr. Rittes holds an M.B.A. from Harvard Business School and an undergraduate degree in business from Fundação Getúlio Vargas (EAESP-FGV).

“We are excited to have Roberto join us in leading our focus on growing our 3G and LTE business by attracting and retaining customers who value the high quality wireless services we offer,” said Steve Shindler, the Company’s Chief Executive Officer.

The Barchart Technical Opinion rating is a 100% Sell and ranks in the Top 1% of all short term signal directions. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend. The market is in highly oversold territory. Beware of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 0.77 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 1.32 is also higher than the current trading price depicting a bearish trend overall..

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 24.16 suggesting a bearish price action.

NII Holdings, Inc. (NASDAQ:NIHD) is all set to announce its earnings on Jun 08/a. As per Zack’s analyst ratings, NII Holdings, Inc. (NASDAQ:NIHD) currently has an average brokerage rating of 4.5. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:NIHD) is $1.25 with a high of $1.25 and a low of $1.25.

As such, while we believe NII Holdings, Inc. (NASDAQ:NIHD) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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