USA Mobility, Inc. (NASDAQ:USMO)
CAPS Rating:
The Company is provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors.
The Company is provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors.
Recs
Straight-lining declining revenue over past three years indicates company is out of business in four more years. Currently at trailing P/E of 4.3, should be more like 3. 2x book value, 2.5x cash. Dividend currently higher than next year's predicted earnings.
Key question is how they handle the decline. Can pagers find a core must-have customer base, and can costs be under that core revenue by 30% or more? Otherwise USA Mobility will have to close shop or sell off. Will leadership do this in a shareholder-friendly manner, or just grab what they can and flee?