NEW YORK (TheStreet) -- Shares of America Movil SAB (AMX) are lower by 1.31% to $24.83 in early-afternoon trading on Monday, after the company, which is controlled by billionaire Carlos Slim, said it's still evaluating an asset sale it said it would go through with, in order to reduce its market share and satisfy the Mexican government's new regulations in the telecommunications sector, Reuters reports.
America Movil announced in July that it would sell off a portion of its Mexican assets so it can trim its local market share size to below 50%, in order to dodge new regulations, started by Mexico's president Enrique Pena Nieto, to increase competition in the sector, Reuters added.
America Movil said today in a U.S. regulatory filing that it's still figuring out how it would drop its market share size to below 50%, and that its final decision would still need regulatory approval, Reuters said.
Separately, TheStreet Ratings team rates AMERICA MOVIL SA DE CV as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICA MOVIL SA DE CV (AMX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."