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LUV Q3-2009 Institutional holdings:
http://www.nasdaq.com/asp/holdings.asp?symbol=LUV&selected=LUV&FormType=Institutional
GENZ Q3-2009 Institutional holdings:
http://www.nasdaq.com/asp/holdings.asp?symbol=GENZ&selected=GENZ&FormType=Institutional
Reviewing the Q3 institutional holders, IMO there is a lot to be positive about, especially Janus adding over 33% to it's position in PCS in Q3. In Q2-2009 Janus added 2,235%, or 1,518,200 shares of PCS. Q2 low was $13.62.
This data is for Q3-2009, in which PCS ran up to > $10, for awhile, so at that time there where more buyers than sellers.
Obviously, with PCS currently trading in the low $6's, selling pressure is/was stronger than buying power. With the Q3 low about $7.72, blow-out earnings by PCS in last reporting period, I am puzzled by the current price action.
PCS needs to get over is old 52 week low of $7.53 ASAP, and we have a long way to go with PCS at about $6.20.
SNCR Q3-2009 Institutional holders: http://www.nasdaq.com/asp/holdings.asp?symbol=SNCR&selected=SNCR&FormType=Institutional
PCS at about $6.00 a share: (source: Yahoo Finance); book value: $6.34
trailing P/E: 13.24
F-p/e: 10.52
price/sales: 0.65
price/book: 0.95
$1.18 billion cash
$3.35 billion debt.
S&P "Buy," PT $12, November 5, 2009, S&P MAINTAINS BUY OPINION ON SHARES OF METROPCS COMMUNICATIONS (PCS 6.12****): PCS reports Q3 earnings per share, before one-time items, of $0.21 vs. $0.13, $0.11 above our estimate. Revenues were above our estimate on stronger than expected revenue per user, despite net additions
that were well below our forecast. We are raising our '09 earnings per share
estimate $0.15 to $0.54 and '10's by $0.09 to $0.82. Although Q3 results were
disappointing, we believe that profitability will improve throughout '09 and we
believe shares are undervalued. We are reducing our 12-month target price by $2
to $12 based on revised peer analysis of enterprise value/EBITDA. /J.Moorman,
CFA
PCS, at $6.01, has three mildly positive technical signals:
1. MACD divergence, in that PCS's stock price went down big time today but the MACD histogram is still in positive, over zero barely, which it just crossed on Tuesday, 11/3, though the MACD line is still in negative territory, -0.607 but trending flat even after today's blood bath. (Note: the MACD line and the MACD histogram are different measurements of the same thing, but are different.)
2. The MACD line crossed over the signal line on Tuesday as well, although after today they are almost the same. If the MACD line continues to stay over the signal line and continues to go up, this could indicate a "trend break," for PCS.
3. Finally, Slow STO, the K line crossed over the D line on Tuesday as well. This "can be a valuable tool for identifying near-term tops and bottoms to help in timing trades closer to local reversal points." from "Technical Analysis Plain and Simple" by Michael N. Kahn
http://stockcharts.com/h-sc/ui I think you have to type in PCS. They also have a good chart school, if you so desire.
My opinion only, do your own DD. GL
from the CC: Consolidated adjusted EBITDA for the third quarter was $272 million, the highest in company’s history. Our consolidated adjusted EBITDA margin for the quarter was approximately 33.5%, compared to 32.9% in the third quarter of 2008. These results were after an adjusted EBITDA burn of approximately $44 million for the third quarter in our Northeast markets. Year-to-date, our Northeast markets have burned 173 million in adjusted EBITDA.
Our core market adjusted EBITDA margin was 42.7% compared to 38.9% in the third quarter of 2008. I would like to point out that within our core markets on a year-to-date basis, we have reported adjusted EBITDA up to $878 million, representing adjusted EBITDA growth of approximately 33% when compared to the same period of 2008.
I’d like to highlight a few items from our income statement and cash flow statement. In the quarter, on a consolidated basis, our service revenue and cost of service grew 33% and 36% respectively to $812 million and $298 million respectively. The increases are due to a growth of our subscriber database.
Our third quarter results reflect core markets, which are comprised of all our operating markets with the exception of our northeast market segment, which includes the Philadelphia, New York City and Boston Metropolitan areas. The change in competition of our segments became effective on January 1, 2009 we file the current report on Form 8-K on June 9, 2009, which retrospectively addressed our 2008 financial and operational results to reflect the change. We encourage you to review the 8-K.
Our consolidated selling, general and administrative expenses were $138 million for the third quarter of 2009. Representing an increase of approximately $22 million when compared to the year ago quarter. This increase was primarily related to the launch of the Boston and New York metropolitan areas.
We generated $313 million in cash from operating activities in the quarter, an increase of approximately $117 million from the prior year’s third quarter. Offsetting this operating cash flow we incurred capital expenditures of approximately $181 million during the quarter. We also generated approximately $74 million in consolidated net income during the third quarter or $0.21 per share. Net income for the quarter includes approximately $18 million relating to the reduction of a state unrecognized tax benefit, associated with expiration of a statue of limitations.
Note: These results were after an adjusted EBITDA burn of approximately $44 million for the third quarter in our Northeast markets. Year-to-date, our Northeast markets have burned 173 million in adjusted EBITDA.
I think this is important: Northeast markets in Q3 were -$44 million, if and when PCS gets this market going, we could see good results, although IMO PCS's Q3 results were sound.
MetroPCS currently expects new subscriber additions in the range of 1.0 million - 1.2 million for the full year. In addition, 2009 consolidated Adjusted EBITDA is now projected to range between $850 million and $950 million."
Earlier, the company had expected net subscriber additions in the range of 1.4 million - 1.7 million for 2009, and consolidated adjusted EBITDA in the range of $900 million - $1.1 billion for the full year."
Citing the uncertainty in the economic and competitive environment and pending the development of MetroPCS's current and planned marketing and sales initiatives, the company said it is not providing financial guidance for fiscal year 2010." from "Trading Markets.com"
I guess this is what is causing the sell-off today.
MetroPCS Q3 Profit Surges: http://www.tradingmarkets.com/.site/news/TOP%20STORY/2628165/
see www.businessjive.com ... we don't live in a perfect, transparent world ... .
end of day close is what matters. IMO "they" are letting their clients cover their shorts this morning, then PCS will take-off to > $8 in short order.
$0.21 EPS & 30% quarterly revenue growth:
WASHINGTON (MarketWatch) -- MetroPCS Communications Inc. (PCS 5.97, -0.65, -9.82%) reported third-quarter net income of $73.6 million, or 21 cents a share, up from $44.9 million, or 13 cents, earned in the same period during 2008. Quarterly revenue generated by the Dallas-based provider of wireless telecommunications reached $895.6 million from the prior year's $686.7 million. Analysts' consensus forecasts, as compiled by FactSet Research, had been for MetroPCS to earn 10 cents a share on sales of $871 million. The company tallied net subscriber additions of about 66,000 in the latest quarter, down from nearly 250,000 in the year-earlier period, as its subscriber base topped 6.3 million at the end of September
Synchronoss Technologies, Inc.'s ConvergenceNow Plus+ To Provide Activation And Fulfillment Services For Launch Of Time Warner Cable`s Road Runner Mobile
Monday, 2 Nov 2009 04:23pm EST
Synchronoss Technologies, Inc. announced that its ConvergenceNow Plus± platform has been selected by Time Warner Cable, the cable operator in the U.S., to accelerate the launch of new Road Runner Mobile wireless broadband devices on Sprint 3G and Clearwire 4G networks for ecommerce, telesales, and e-tail/retail.
Synchronoss earnings jump 34% in third quarter
SAN FRANCISCO (MarketWatch) -- Synchronoss Technologies Inc. said Monday afternoon that earnings for the third quarter jumped 34% thanks to an increase in business from wireless carriers and cable providers. For the quarter ended Sept. 30, Synchronoss (SNCR 13.02, +1.42, +12.24%) said net income was $3.1 million, or 10 cents a share, compaared to net income of $2.3 million, or 7 cents per share, for the same period last year. On a non-GAAP basis, the company said it would have earned $4.4 million, or 14 cents a share, for the recent period. Revenue grew 26% to $33.1 million. Analysts were expecting earnings of 14 cents a share on revenue of $32 million, according to consensus forecasts from Thomson Reuters.
Earnings est. $0.09, Q3-2009, 11/5 before market opens Thursday.
Barron's blog: Citi, PCS hold but upgrades PT to $11:
http://blogs.barrons.com/techtraderdaily/2009/11/02/leap-wireless-citi-upgrades-sees-seasonal-rebound/?mod=yahoobarrons
Q3-2009 Institutional holdings coming in on NASDAQ.com. Essex, an
institution I follow, added 271K shares, +5,428%, holding 276K shares, worth $1.8M. A medium size holding for them, not big overall holding for PCS though.
Still IMO, this is a good sign. Q3 low was $7.72, so they saw value
there. Also, they sold out of LEAP, $351K worth.
Here we go: Leap Wireless (LEAP) & Metropcs (PCS): Bounce time? October 26, 2009 8:53 AM EDT
From Notable Calls
I'm seeing some interesting comments on Leap Wireless (NASDAQ: LEAP) & Metropcs (NYSE: PCS) after T-Mobile USA launched its new pricing plans, which have been speculated about recently as part of "Project Black/Dark".
- Piper Jaffray notes the the new plans are more benign than investors' initial fears and could relieve some pressure on wireless stocks.
Firm notes they think T-Mobile's new plans most directly target Sprint's prepaid and Simply Everything plans, as well as AT&T's new GoPhone offer. The pricing levels are generally too high to be a major competitive threat to Leap or MetroPCS, yet don't offer the robust 3G networks of AT&T or Verizon.
It will also be interesting to gauge consumer interest in plans without a handset subsidy; recall iPhone sales were tepid prior to a price drop when first introduced and really accelerated once subsidies were included with a higher monthly recurring fee.
- Goldman Sachs says new pricing appears more rational than recent reports, which had indicated potential “all you can eat” unlimited talk/text/data plans for $60/month (Project Dark introduced this for as low as $80/month). So, this is not as bad as perhaps many had feared. However, on net this is another viable competitor at the lower end of the market, with an offering around no contract unlimited that more directly competes against Leap, MetroPCS and Boost in particular. Additionally, the plans aim to reinforce the company as the value alternative at the higher end of the postpaid market.
- Oppenheimer notes that as they expected, T-Mobile unveiled new prices between $50-80/month for unlimited voice+text+web contract/no contract options, which validates information leaks over the past few weeks that its new pricing scheme was not going to be as deeply discounted as originally feared. They believe this is the last major price move in the 2008-09 Wireless Price War, and expect pricing stability for at least a year. The headlines that T-Mobile is cutting prices could pressure industry shares, however we believe these less aggressive price points putting T-Mobile at a slight discount/par with Sprint should help stabilize stock prices in the industry.
Positively for LEAP/PCS, T-Mobile's new pricing remains at a premium which could relieve some pressure on its shares. We expect T and VZ to maintain their premium pricing, given the high family/enterprise plan mix (~80%) of their customer base, and the fact they continue to gain share with their handset/network/customer advantage.
- Jefferies is out positive saying investors are concerned that heightened pre-paid competition threatens LEAP's/PCS' survival. They believe that LEAP/PCS will weather the storm because of their favorable cost structure & rapidly expanding dist. Reit Buy rating.
ARPU Pressure Moderating Post Project Black. T-Mobile's expected unlimited, no-contract offering is expected to be priced at $49.99 for voice, $59.99 for voice and text and $79.99 for voice, text and web. These price points are $10-$30 above LEAP's/PCS' price plans.
LEAP's Broadband Initiative to Turn EBITDA Breakeven in Early 2010. The company expects to be near EBITDA breakeven by YE09 and expects incremental customer profitability for the segment to be similar to its existing voice business in 2010 and could represent over $100mm in run-rate EBITDA.
Significant Spectrum Value. Jefferies believes that there is significant spectrum value in these firms. LEAP has 2.9bn MHz-POPs, which they estimate would be worth $2.9bn using valuation data pointsderived from precedent spectrum sales over the last seven years. The value of LEAP's/PCS' spectrum supports a liquidation/break-up value of at least $24 & $8/share, respectively.
Notablecalls: LEAP/PCS have been taken to the back and SHOT! In five months both stocks have lost almost 2/3 of their value.
One of the major drivers behind the moves is the looming competition (read: pricing). Yet, now it looks like the DT's Project Darkness isn't that of a big deal.
I think that given the very low valuations and increasing potential to be acquired, buyers will step back in at least in the s-t.
Not going to press it but I'm looking to buy some PCS and LEAP.
For more calls go to http://notablecalls.blogspot.com/
S&P "fair value" for PCS is $11.20 as of October 20, 2009
Here is the Vanguard re: GS downgrade: 03:05 pm ET ... LEAP WIRELESS INTERNATIONAL, INC. (LEAP 13.37) DOWN 0.65,
GOLDMAN CUTS LEAP WIRELESS (LEAP), METROPCS (PCS) TO NEUTRAL FROM
BUY... Analyst Jason Armstrong tells salesforce downgrades both LEAP and PCS
as he expects a variety of NT negative catalyst to serve as an overhang on both
stocks. While continues to believe both cos have low-cost leadership in the
unlimited prepaid space, should benefit from a secular shift from wireline to
wireless, believes new competition has greater tolerance for limited profitability
than other competitors have shown in the past, thus continuing to negatively
impact trends near-term. Cuts LEAP target to $16 from $26, PCS to $7 from
$14./Trombino
CS "Underperform," $4 PT for PCS: from Jason on Yahoo mb
While the headline that everyone seemed to glean from today's CS initiation was "Underperform -- $4 PT", and the report is generally pessimistic, there are some positive quotes. I'm just reading through it now; thought I'd share.
"Intrinsic Value Thesis Not Relevant Yet; Things Get Better Before they get Worse -- We don't think our thesis is investable now, because most of the price and margin pressure kicks in after 2010. We expect relatively robust revenue growth coupled with margin expansion to drive robust EBITDA and FCF growth in 2010."
"M&A Provides Floor -- We see a number of potential acquirers for PCS; however, management seems less intent on selling the company."
"Risk of Relief Rally -- Given recent performance PCS could see a significant relief rally if results show any sign of sequential improvement. In addition, we are entering into PCS' seasonally strong 4Q (to be followed by a seasonally strong 1Q), so commentary on trends on earnings could be optimistic, boosting shares further."
and this was added by bricktop:
CS designed an Armageddon "worst-case scenario" model that assumes the worst on all fronts. But, then adds numerous caveats essentially saying "we are sand bagging the hell out of PCS"
Pay particular attention to the disclosure appendix!
"Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (LEAP, PCS) within the next 3 months."
Risks
Risks to our Forecast
Upside: The most significant risk to our forecast is that the company manages to maintain
more stable ARPU. (We forecast a $6 decline.) The company has managed to grow ARPU
in the past, despite competitive pressures. In the Prepaid Valuation Primer we show that
our expected ARPU decline wipes out $10 of equity value. If ARPU remains constant, our
estimate for the value of the business would increase to $8 (14% above current price).
Downside: We have assumed that management is able to reduce fixed costs and capex
significantly as pressure on margins mount.Risks to our Thesis
Market looks through pricing announcements: The greatest upside risk we see is that
the market overlooks further pricing announcements and bids up the shares on the heels
of improved 3Q09 results. Given recent performance, PCS could significantly outperform
the group.
M&A: We are assuming only modest upside in the event of M&A based on our estimate
for cost synergies. However, strategic buyers could be willing to ay substantially more
based on the strategic value of the asset. In addition, if this were a competitive bidding
process the value could rise significantly above fair value.
Timing and Volatility: PCS has been under considerable pressure recently, and the stock
has been volatile generally. If near-term results prove better than expected, the stock
could see substantial upside before our thesis comes to bear.
Disclosure Appendix
Important Global Disclosures
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total
revenues, a portion of which are generated by Credit Suisse's investment banking activities.
The subject company (LEAP, PCS) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit
Suisse.
Credit Suisse provided investment banking services to the subject company (LEAP, PCS) within the past 12 months.
Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (LEAP, PCS) within the next
3 months.
As of the date of this report, Credit Suisse Securities (USA) LLC makes a market in the securities of the subject company (LEAP).
The author(s) of this report maintains a CS Model Portfolio that he/she regularly adjusts. The security or securities discussed in this report may be a
component of the CS Model Portfolio and subject to such adjustments (which, given the composition of the CS Model Portfolio as a whole, may differ
from the recommendation in this report, as well as opportunities or strategies identified in Trading Alerts concerning the same security).
JPM analyst still has a $10 PT for PCS after downgrade. JP MORGAN CUTS LEAP WIRELESS (LEAP), METROPCS (PCS) TO NEUTRAL
FROM OVERWEIGHT... Analyst Mike McCormack tells salesforce downgrades
LEAP, PCS as he's increasingly concerned with wireless fundamentals
as
industry faces secular challenges, with high penetration, heavy
competition
causing downward movement on price, increased acquisition costs.
Thinks LEAP,
PCS been forced to operate more, more defensively. Expects to see
additional
ARPU erosion over time while LT margin guidance could be challenging.
Despite
potential NT outperformance, very cautious on LT fundamentals. Keeps
LEAP's
$22 tgt, but cuts PCS $11 tgt to $10./Morrow
This is from LEAP's current S&P Stock Report.
S&P's Fair Value Calculation of PCS is $11.90. This is from 10/19/09 when S&P had PCS stock price at $7.15. Analysis of the stock's current worth, based on S&P's proprietary quantitative model suggests that PCS is Undervalued by $4.75 or 66.4%. S&P currently has a PT of $14 for PCS.
It will be interesting to see if S&P analyst James Moorman joins the downgrade parade on PCS in coming weeks. JP Morgan has a PT of $10 and GS $7 for PCS.
I have no position in DPTR and really do not have any information. GL
http://www.whalewisdom.com/brokerage interesting info on upgrades/downgrades
I do not have much faith in Reuters financial reports. But I do think it is interesting they have upgraded PCS to outperform at this time, especially after the JP Morgan downgrade 10/1/09.
The only financial reports I put any credence in are S & P Stock Reports on an individual company, like PCS. (They quantitative reports and other reports too). A Stock Report is signed by the individual analyst, dated, and has a price target and is continually updated. The Reuters reports provide non of these.
James Moorman's PCS's Stock Report dated 8/10/09 has a buy (four stars) and 12 month price target of $14.
GL
PCS @ $7.15. p/e19.70, fp/e 10.36. If we go much lower someone knows something we don't. S&P "buy," PT $14, Reuters upgrade to "outperform" from neutral (for what that is worth).
Reuters Upgrades PCS to Outperform from Neutral, 10/13/09
ReutersCompanyResearch
MetroPCSCommunications,Inc.(PCS) 13Oct2009
PerformanceRating:Outperform
Reuters Composite Rating
We cannot guarantee that each stock will perform
in accordance with its rank. But we do believe that
over the long term, stocks rated Outperform (30%
of all stocks we rate) will, in the aggregate,
outperform stocks rated Neutral (40% of all stocks
we rate), and that stocks rated Neutral will, in the
aggregate, outperform stocks rated Underperform
(30%). All analysis is based on publicly available
company financials, fundamental ratios, relative
rankings of financial data and ratios, and observed
security prices.
Component Weight
Types of investment criteria differ in how useful
they are for predicting future stock movement.
Based on our research, the Composite Rank
assumes these relative degrees of importance.
Fundamental Quality 36%: Neutral
Technical Factors 27%: Outperform
Operational Trends 13%: Outperform
Value Catch-up 24%: Neutral
Hi surf, any comments on DPTR and ONXX? Hope all is well.
P & F Pattern Descending Triple Bottom Breakdown on Oct 13, 2009
Interesting that Analyst Mike McCormack of J.P. Morgan lowered his
rating of PCS on 10/1/09, after the +40.5% increase in short interest
in PCS from 9/15/ to 9/30. :-o what a coincidence!!!! some things
never change ... .
PCS short interest @ 20.14M shares as of 9/30/09, +40.5% from 9/15 (15.76M). During that time frame PCS was the 11th largest change in short interest, +6.38M shares. Source: Barron's 10/12/09.
Telecommunications sector -2.4% last week, the worst performing sector
of the SP1500 composite index by far and was the only negative sector
performance last week. I see this a positive, that PCS is just
reacting to the sector weakness and not specific to PCS.
Mobile Telecom market industry group @ 63 (142- 62 52 week high/low). Source Barron's 10/12/09.
LTE Leading the Next Generation, By Zacks Equity Research, Tuesday October 6, 2009
Long-Term Evolution (LTE) technology is ahead in the race to be the most sought-after next-generation (4G) wireless network standard in the market. The 4G wireless networks are aiming to cope with substantial demand for high-speed wireless data services and mobile video.
The growing acceptance of LTE technology has prompted the mobile handset makers to develop phones that will be compatible with this network. Qualcomm Inc (NasdaqGS: QCOM - News), one of the key developers of OFDMA (Orthogonal Frequency Division Multiple Access) based chipsets has decided to introduce the trial version of LTE-compatible chipsets during the fourth quarter of 2009.
Industry sources predicted that the first LTE handsets may arrive on the market in the second half of 2010, but these next-generation smart-phones may to go mass market by early 2012. NTT DoCoMo (NYSE: DCM - News) will launch LTE handsets in 2011 compatible with its current 3G network, enabling the customers to access services even if they are outside an LTE coverage area.
LG Electronics and Samsung Electronics on the other hand have already given a demonstration of LTE-based modems. LTE is expected to achieve download transmission speeds of 300Mbps and offers several advantages over other wireless techniques.
Rumors within the broadband industry are suggestive of an expected deal between the iPhone maker Apple Inc (NasdaqGS: AAPL - News) and Verizon Wireless (NYSE: VZ - News) to introduce a new LTE-compatible iPhone. Nokia Corp (NYSE: NOK - News), the largest mobile phone developer in the world, has also entered the race and is expected to launch LTE-based mobile handsets by 2011. Metro PCS Inc (NYSE: PCS - News) is expected to deploy LTE network in late 2010 or in early 2011. The company is already working with ZTE Corp to create an LTE handset.
Reuters upgrades PCS to outperform on 10/2/09 from neutral.
Shares of PCS are rated OUTPERFORM. Outperform-rated stocks score in the top 30% of all stocks Reuters rates and are expected to offer higher returns than the market as a whole. Reuters initiated an Outperform rating on 10/2/09. I don't really like or trust Reuters (their analyst predictions have cost me a lot of money), still this is good news for longs.
PCS at about $8.50. 1. S&P has 3Q-09 est. at $0.10 a share. IF they hit their numbers in first week of Nov, or beat, all will be OK;
2. If not, a new 52 week low, <$7.53;
3. Some of the reasons I bought PCS at around $8 are:
a. $13.62 was Q2-2009 low;
b. Janus added 2,235%, +1.5M shares in Q2, and holds 1.5M shares,
about $12.7M, not huge for them but a big increase in Q2. So they saw
value in PCS over the $13.62 low. We are buying in the low $8's;
c. S&P Buy rating with PT $14 and "fair value" of about $13;
d. Vanguard and Wellington are the four and fifth largest
shareholders, I follow these institutional holders and they are
conservative;
e. beta is about .50;
f. as economy weakens people have less money to spend on wireless,
which about 80%+ of people have and can not live without;
g. I have more reasons which I am not going to list here.
Caveat: wireless companies are under tremendous pricing pressure right
now, to much competition. Someone is going to get hurt before the
dust settles.
PCS Reaches More US Markets
By Zacks Equity Research
On Friday October 2, 2009, 6:30 pm EDT
MetroPCS (NYSE: PCS - News), a leading provider of unlimited pre-paid wireless service in the US, has reportedly expanded its national unlimited service coverage to include new markets in the Midwest, Northwest and parts of the Eastern US.
This expansion has nearly doubled the number of cities and towns that MetroPCS serves in the US to more than 11,000. The expanded coverage is being offered to the company's customers (on $40 or higher monthly rate plans) without any additional cost.
MetroPCS offers a broad range of wireless broadband services in the selected metropolitan areas in the US, leveraging its proprietary CDMA technology based network. The company remains one of the lowest cost wireless service providers in the US, which enables it to roll out a range of cheap service plans that start as low as $30 per month.
MetroPCS is currently enjoying meaningful traction in the Northeast region as approximately 94% of the new customer additions came from this region in the most recent quarter. A significant part of the company's network infrastructure deployment initiatives are currently centered in the Northeast region.
Despite a leading position in the unlimited prepaid segment, MetroPCS contends with a customer retention problem as evidenced by significant increase in churn (customer switch) in the last quarter. The company has been increasingly challenged by competitive discounted service plans by some of its larger rivals, such as Sprint Nextel's (NYSE: S - News) Boost Mobile, America Movil's (NYSE: AMX - News) Tracfone and Deutsche Telekom's (NYSE: DT - News) T-Mobile USA.
MetroPCS has initiated several steps to counter intense competition and drive subscriber accretion. The company is broadening its portfolio of discounted price plans, rolling out new product/services and entering new markets for growth. Moreover, MetroPCS has recently collaborated with Ericsson (NasdaqGS: ERIC - News) and Samsung for its forthcoming 4G Long Term Evolution (“LTE) wireless broadband service.
While the company's expansion initiatives into new US markets appears encouraging for sustaining subscriber growth, associated expenditures may strain the balance sheet condition.
"Stakes rise in gene-patenting lawsuit"
http://www.sltrib.com/portlet/article/html/fragments/print_article.jsp?articleId=13446720&siteId=297
PCS @ $8.49 closed at $8.50 support level; support & resistance levels;
support @
$8.25
$7.99 and
$7.53 52 week low;
resistance @
$8.88
$9.05 which is now a huge resistance level
$9.38 -50% from $18.75 52 week high
$9.59
$9.90
$10.65
$11.69
$12.07 Q1-2009 low
$12.49
AH comment: 355K traded to about $9.40, if, IF PCS closes tomorrow
over the key $9.05 support level, IMO today was a "take-down" to shake
out weak hands, even with the 19M share volume today.