From Baron Funds' second quarter commentary:
NII Holdings, Inc. (NIHD, Financial) is a wireless network service provider in Latin America, operating under the Nextel brand. The shares, which have been weak for the last year, continued to fall in the second quarter, as the company acknowledged it is experiencing delays in rolling out its 3G services in Peru, Mexico and Brazil. Although these delays should last no more than three to six months, NIHD's subscriber growth has stalled in the near term as competitors have been gaining share with their own 3G offers. While the target opportunity that 3G represents remains meaningful, NIHD has become a "show me" story, and, until services are launched later this year, investors seem unwilling to pay for NIHD's anticipated future success in advance of evidence that the company can successfully make this important technological transition. (Richard Rosenstein)
NII Holdings, Inc. (NIHD, Financial) is a wireless network service provider in Latin America, operating under the Nextel brand. The shares, which have been weak for the last year, continued to fall in the second quarter, as the company acknowledged it is experiencing delays in rolling out its 3G services in Peru, Mexico and Brazil. Although these delays should last no more than three to six months, NIHD's subscriber growth has stalled in the near term as competitors have been gaining share with their own 3G offers. While the target opportunity that 3G represents remains meaningful, NIHD has become a "show me" story, and, until services are launched later this year, investors seem unwilling to pay for NIHD's anticipated future success in advance of evidence that the company can successfully make this important technological transition. (Richard Rosenstein)
