MetroPCS Communications (PCS)
By J. Royden Ward, Editor of Cabot Benjamin Graham Value Letter
From Cabot Wealth Advisory 2/17/11 Sign up for free Cabot Wealth Advisory e-newsletter
Metro PCS Communications (PCS) is a wireless telecommunications provider. The company offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas in the U.S. over its own licensed networks or the networks of affiliates.
PCS provides a variety of wireless communications services to its subscribers without long-term contracts, but with paid-in-advance, flat-rate, unlimited usage plans that include all applicable taxes and regulatory fees in the monthly price. PCS’s unique plans are sold at a low monthly fee and are attracting many new customers at the expense of larger providers. The company has eight million subscribers.
Metro PCS’s aggressive marketing of flat-rate wireless plans with unlimited usage is winning new customers at a rapid rate. I forecast 24% EPS growth for the next five years or longer. At 17.2 times earnings, PCS shares are undervalued.
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J. Royden Ward
Editor of Cabot Benjamin Graham Value Letter
A lifelong investment professional, J. Royden Ward applies his 40 years of investment research, portfolio management, writing and publishing experience to his role as analyst and editor of Cabot Benjamin Graham Value Letter, which is directed to long-term investors seeking a guide to profitable value investing based on the time-tested systems originally developed by Benjamin Graham, the Father of Value Investing. A second-generation disciple of Benjamin Graham, Roy in 1969 pioneered the development of a computerized model that applied the formulas developed by Graham using a unique ranking system. Today, Roy applies his system to two models in the Value Letter.
|MetroPCS Communications (PCS)
2250 Lakeside Boulevard
Richardson, Texas 75082
|Index Membership: N/A |
Industry: Wireless Communications
Full Time Employees: 3,600