NII Holdings Inc. - NIHD - close: 44.45 change: -0.26

Stop Loss: 41.75
Target(s): 49.00, 53.50
Current Gain/Loss: + 0.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
NIHD is a Central and South American telecom company. Shares have been consolidating sideways for months. This past month the stock broke out over key resistance in the $43-44 zone. This pull back to $43.50 this morning and the rebound higher looks like a new entry point to hop on board.

I am suggesting bullish positions now. We can buy the stock or buy calls. My time frame is several weeks but we may end up exiting the January calls earlier than our stock position since January options expire in about four weeks. I'm listing a stop loss at $41.75 but cautious traders might want to consider a stop loss closer to $43.25 instead. FYI: The Point & Figure chart for NIHD is bullish with a $61 target.

Suggested Position: Buy NIHD stock @ current levels

- or -

Buy the 2011 January $45.00 calls (NIHD1122A45) current ask $1.45

- or -

Buy the 2011 February $48.00 calls (NIHD1119B48) current ask $1.15

Annotated chart:

Entry on December 28 at $xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on December 27th, 2010