Sites Latam titles lose more than 60% of their value in less than two weeks

The titles of Latam Sitesthe telecommunications tower company in Latin America (with ticker symbol LASITE), owned by Carlos Slimlost more than 60% of their value in the Mexican stock exchange (BMV), going from 16.51 pesos to 6.3 pesos per unit in seven days, until today.

Lasite, which represents the telecommunications towers that he had in his possession America Movilowner of the cell phone operator Telcel, spun off that business with 29,090 towers located in Argentina, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Puerto Rico and Uruguay.

Valentín Mendoza, deputy director of stock market analysis at the brokerage house Actinver mentioned that the magnitude of the drop in Lasite’s share price is due to the fact that América Móvil did not list the shares in the United States, and for institutional and international investors it is not feasible to acquire the titles from a commercial point of view. operative.

Its market capitalization went from 52,521.62 million pesos to only 20,041.56 million pesos, becoming the second smallest company in market value in the main stock market index of the Mexican stock exchangethe Index of Prices and Quotationsranking only above Volaris.

in 2015 America Movil established a telecommunications tower company in Mexico, Telesitesin order to build, operate and market its structures for the installation of telecommunications equipment.

On December 21, 2015, it began operations with a strong drop in the Mexican stock market. During its first four months on the Stock Exchange, its shares lost 23% of their value, going from 13 pesos to 10 pesos per title between January and the first days of April 2016.

In just seven days of operation, the shares of Latin American Sites accumulate a much greater drop, in part due to the data revealed by América Móvil on the operations of the new company.

“Compared to Telesites from Mexico, Latin America Sites It has lower margins, higher leverage and a lower monthly rent per tower, so an adjustment in the price of its securities was expected.” Valentin Mendoza added.

Market conditions are different from 2015 when Telesites went public on the Mexican Stock Exchange.

The uncertainty that exists in the stock markets, generated by inflation, has impacted on the margins of companies listed on the Stock Exchange and also on their valuations.

So far this year, the main index of the Mexican Stock Exchange has already accumulated a drop of 11.44%, and the forecasts at the end of the year turn pessimistic.

About 26 of the 36 shares of companies listed on the IPC have fallen in their prices so far this year. And the behavior of the share price of Sitios Latam follows the same trend.