NEW YORK (TheStreet) -- NII Holding (NIHD) shares dropped down -75.6% after the company announced that it will likely be filing for bankruptcy because it cannot fulfill its financial obligations.
“Despite the actions we’ve taken to improve our operational performance, we have fallen short in our efforts, leaving the company with a liquidity position that is not sufficient to support the business,” said NII CEO Steve Shindler.
The telecom company's South American and Mexican operations have been hurt by superior rivals America Movil (AMX) and Telefonica SA (TEF).
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TheStreet Ratings team downgraded the company's stock to SELL last Saturday when the stock price was $6.66.
TheStreet Ratings team rates NII HOLDINGS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NII HOLDINGS INC (NIHD) a SELL. This is driven by several weaknesses, 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 deteriorating net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: