MetroPCS Communications, Inc. (NYSE:PCS)

I tend to shy away from companies without a long-term economic moat--those without a real competitive advantage.

However, I am a fan of acquisition targets in any space, and this firm is definitely a takeover target. At present valuation, the company is very cheap. It's assets are also increasing in value with each day as more customers join this tiny player.

People miss the beauty in firms like this. When the economy performs poorly, consumers switch to prepaid cellular devices. However, when the economy strengthens, those who couldn't afford a phone at all also go to prepaid services.

I see competitors in this space cannibalising their own pre-paid customers to maintain margins on subscription plans. Their customers who wish to remain on a prepaid plan will seek other options.

I like this as a five-year outperform.

market overreacted to last qtr report. up, up, and away.

best move:
$10 call option w/ expiration ~6mos

Dirt cheap.

Cheap, strong earnings growth, future upside potential growth with move into 4G and smart phone offerings.

I'm getting in while it's on sale. If the economy comes back, it should see accelerated growth. If the economy tanks, they should pick up a lot of VZ and ATT customers looking for a better deal.

MetroPCS has stores everywhere. Though their coverage is limited, it is usually good in the city. They still have unlimited data plans. As of this writing, both AT&T and Verizon have done away with unlimited data. MetroPCS is in a great position to compete with the big 3 (Verizon, AT&T, and Sprint).

Times area hard .

Good jump in price due to panic and overselling. The company has performed well for quite a number of quarters and should be able re-align under the increased pressure from the economy and economy.

Oversold

Great fundamentals, no-contract model has a big place in the market. This tail could wag the big dogs on that model; if they grow their customer base at the expense of the big dogs (Verizon, ATT), we could see the 2-year contract model diminish, leaving Metro PCS as an attractive acquisition target. I bought in January 2011...up 25% so far. I still see them as undervalued. $40/share by summer 2012.

My son says he thinks Metro PCS will take over ATT or Sprint because they offer smart phones with no contract and unlimited talk, text, and web.

low PEG, strong price uptrend

I believe that Metro PCS is going to emerge as a top three wireless phone service provider in the next 2-4 years. Metro PCS appears to be a run of the mill bargin cell phone provider, but they offer plans that stomp out others dollar for dollar. As technology increases so will Metro PCS's phone platforms and networks. In 10 years Metro PCS has grown from a Metropolian area only service provider to now covering 90% of the United States.

$20 by years end!

people may not like the stock but it has a strong brand and can grow. what will be a great catalyst for them is that sprit announces bankruptcy and MetroPCS gets more people. an even better play would be for PCS to merge with CLWR and have a better service to attract more customers. i see this stock at a 10B Market Cap in the coming years and is also a great play on the poor.

Over the past year this small wireless provider has made some serious gains. A year ago no one knew who Metro PCS was now their opening more and more stores in major cities across the US and in their suburbs. This is a company to keep an eye on over the next year or so. I bought it when it was at 8.80 a share and boy its been a good year

Technicals

I like the idea of no long term contract for cell service.

Strong capability thanks to their new 4G network