BUY $CHL - NRPicks Ene 10

China Mobile is not only China's largest telecom operator by the number of mobile subscribers (946 million), but also the largest in the world.
The price of its stock suffered an 18% decline since November 11, and is within a downtrend since 2015. This behavior is very sectoral and we can corroborate it in comparable companies such as Telefónica (TEF) and América Móvil (AMX).
Fundamentals:
- Defensive
- P/E Ratio of 7.2x, VS 42.3x and 19.8x industry and market respectively
- P/B 0.7x VS 1.9x industry
- ROE 9.4% VS 4.8% industry
- Current price of $28.29 VS $142 Fair Value (80% undervalued)
- 6.2% Debt/Capital
Technical:
- Under SMA 200
- +150% average daily volume (1 Month)
- Oversold RSI
- +12% upside average in recent months (Fibonacci Backspace)
The company has not been affected by operational issues because it maintains a consistent level of sales and controlled debt level.