MetroPCS Communications, Inc. (PCS)

[bowonwing]

I have to admit I am flabbergasted by todays price action after PCS's earnings report, down almost 5% on heavy volume, >11M shares. 350K block at end of day on down tick. Can't argue with that price action, "Mr. Market" is king and "someone" wanted out of PCS today.

So with all the "good" news, for the first time PCS made over $64M in FLCF, as Curely would say, "What happened?"

PCS is too "long-term" a play, timeframe here is two+ years out.

Margins being cut to mid 30% due to increased expenses for rolling out new markets and plans.

Company offering no financial guidance for 2010, uncertainty, the big boys do not like uncertainty.

About $600M more long-term debt, to about $3.6B. We are in a period of economic deflation, where debt is a killer. But "the company exited 2009 with consolidated cash and marketable securities of about $1.2B." (from Zack's)

Linquist said PCS going to spend about $500M in 2010, half for G4-LTE roll-out and half for market expansions. More uncertainty here too. JMHO