NEW YORK (TheStreet) -- Shares of American Movil SAB de CV (AMX) are climbing, up 7.50% to $22.30, in mid-afternoon trading on Wednesday, continuing gains that began in pre-market trading following the company's announcement that it agreed to sell off some assets.
The decision came about while Mexico's congress was considering a bill that would impose harsh penalties on companies operating in the country that were dominating their sectors.
The sell off will reduce the Mexico-based communications company's national market share to under 50%, America Movil said. The company also had to give up its right to purchase the satellite TV provider Dish Mexico (DISH).
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Carlos Slim, who owns 57% of the company, agreed to breakup its Mexican phone operations in order to avoid government penalties that would damage profits.
TheStreet Ratings team rates AMERICA MOVIL SA DE CV as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICA MOVIL SA DE CV (AMX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk."