Update (4:23 p.m.): Updated with closing price, day high and low prices, price change and volume information.

NEW YORK (TheStreet) -- NII Holdings Inc.  (NIHD) - Get Report soared 24.38% to $2.78, up from its previous close of $2.24, at the close of the trading day on Monday after the company announced that it had reached an agreement to use Telefonica SA's (TEF) - Get Report network in Mexico and Brazil.

The company hit a high of $2.85 and a low of $2.59 for the day and holds a one-year high of $9.82 and a one-year low of $1.90. On Monday, the stock had a volume of 17,100,944, more than three times its average volume of 5,564,500.

TheStreet Ratings team rates Nii Holdings as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

NII Holdings, which offers Nextel mobile phone service in Latin America, had its biggest one-day increase since Nov. 2008 after the stock had fallen 65% in the past year.

Telefonica will permit NII to use its 3G mobile phone service in the two largest Latin American nations in order to support NII's own Nextel coverage, according to a statement released by the two companies. The partnership helps the Reston, Va.-based NII serve its customers without the added expense that would come with expanding its own service to more remote parts of the coverage area.

"We rate NII HOLDINGS INC (NIHD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NII HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, NII HOLDINGS INC swung to a loss, reporting -$4.15 versus $1.31 in the prior year. For the next year, the market is expecting a contraction of 66.5% in earnings (-$6.91 versus -$4.15).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net income has significantly decreased by 263.9% when compared to the same quarter one year ago, falling from -$82.42 million to -$299.94 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, NII HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$62.41 million or 156.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 65.10%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 372.22% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • You can view the full analysis from the report here: NIHD Ratings Report