irishred1 (63.01)

Fibertower (ftwr): A Great Play on Developing Trends in Telecom

October 21, 2009 – Comments (2) | RELATED TICKERS: FTWR

Remember our strategy? Buy large stakes into companies that have value, regardless of where they are found.

The market was willing to pay upwards of $10/share for Fibertower while it was still generating negative earnings year after year, bleeding slowly. Now, it's had two consecutive quarterly profits and its selling for $1.55/share. Get in while it's still between $1.00-$1.55. This is a great way to profit from the smart phone trend, as consumers hog more and more bandwidth with their Iphones and Iphone wannabe devices. Carriers such as AT&T need more capacity and Fibertower is in place to help. While I've seen other telecom companies that look interesting, FTWR has non compete agreements with large carriers, which I like much more than a company that has lots of competition (such as suppliers to the big telecoms). Karen Finerman recommended this company last year on CNBC, but she was a bit early to the party (hindsight is 20/20). The stock/company appears as though it almost died at one point during our financial armageddon (plummeted down to $.07/share), but it's on the uptrend now, albeit an erratic one. This is a great buy and hold for future gains in the coming year or as a possible acquisition target.

DISCLOSURE: I have a position.
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Just my opinion, might lose your shirt. Could result in pleasure or in a world of hurt. A friendly reminder to do your own due diligence and take my stock ideas solely as my opinion and not advice