NII Holdings Inc (NIHD) Stock Turns Green Post Drastic Cost Cutting


Dallas, Texas 12/30/2013 (FIANACIALSTRENDS) – NII Holdings Inc (NASDAQ:NIHD) which is a small cap wireless communications provider has been struggling to show gains to its investors in the past one year. In the recent past the stock has showed signs of a turn around by posting a solid 6.17 percent increase in the past one month. This increase tapers down to a substantive 3.6 percent increase over the past one week. This upturn in the short term has been an unlikely glimmer of hope for the investors of this $444 million firm, since they have been seeing losses to the tune of 64 percent in the value of their holdings in the past one year.

This brief respite at the stock market was achieved thanks to some major surgeries that the Board carried out at the top echelons of this service provider in its Mexico operations. It recalled its long serving Mexico operations head back to HQ and is appointed a interim honcho, while it looks for permanent replacements. Readers should note at the firm is struggling to hold on to its subscriber base and has been on a major network expansion drive towards this effort by shelling out close to $1.5 billion. In spite of these efforts, NII Holdings Inc (NASDAQ:NIHD) has been struggling to push back the competition from the likes of America Movil SAB and Telefonica SA (TEF). In order to enthuse the investors, the firm has embarked on a reduction in workforce program which would when completed, would see close to 1000 employees being let go by end of this year.

Readers should note that NII Holdings Inc (NASDAQ:NIHD) which operates telecom services provider Nextel Communications, Inc. in the South American markets. Its operations spread across “Brazil, Mexico, Argentina, Peru and Chile”. In the past one year it has managed to post sales of $5.16 billion and has accumulated losses which have added up to $1.45 billion in the same period.