SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Gorilla and King Portfolio Candidates
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: buck who wrote (17862)2/13/2000 2:52:00 PM
From: bozo1  Read Replies (1) of 54805
 
Towers companies as a way to play wireless

I have looked at some towers companies recently: SBAC,TWRS,AMAT as a low cost, lower risk play on the wireless technology. It seems to me that if wireless is the wave of future as Gilder and many others speculate (and I agree) then won't there have to be alot more towers with many more receivers/transmitters to transmit the signals? The incremental rent income from adding one more receiver/transmiter on an existing tower is mostly profit. Certain type towers may have capacity constraints. Obviously coverage of towers is important within a defined geographic area. The industry seems to be consolidating with lots of acquisitions going on.
What am I missing? These companies seem to generate lots of free cash flow although their net income is lower due to depreciation/amortization/interests costs (kindof like many telephone companies.)Generally they seem to be valued based on EBITDA (earning before interest, taxes, depreciation and amortization).

Will the satellite companies ever make these towers companies obselete?

The thoughts of the experts and quasi-experts on this board would be greatly appreciated. I wonder if my feeble brain is missing something.

Just for disclosure purposes I will tell you I have owned SBAC for several months and am looking at other candiates for inclusion in my portfolio. I wonder if a king can develop from these companies?

Happy days
Kerry
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News