AMT, CCI, SBAC

TMT


Short tower companies: Crown Castle International (CCI), American Tower (AMT) and SBA Communications (SBAC) 

Publicly traded companies mentioned herein: Crown Castle International (CCI), American Tower (AMT), SBA Communications (SBAC), Sprint (S), Softbank (9984 JP), Globalstar (GSAT), Alphabet (GOOGL) and T-Mobile (TMUS).

Highlights

The presenter believes tower companies including Crown Castle (CCI), American Tower (AMT) and SBA Communications (SBAC) are at long term risk of losing share to emerging alternate transmission structures rapidly coming on line. He believes viable tower alternatives including low earth orbiting satellites made by Globalstar (GSAT) as well as wifi and cellular service-enabling balloons made by Google (GOOGL) are poised to soon go live. As well, he points out that cable companies continue in their aims to offer cellular service exclusively over wifi. Tower stocks are considered by many to be relatively bulletproof in the context of favorable long term secular dynamics such as escalating data usage on mobile devices. Indeed, many investors compare tower operators to relatively stable, high quality commercial real estate companies, but the presenter believes the market is downplaying the longer term risks facing the group. Meanwhile, Sprint’s (S) ongoing troubles could negatively impact the group in the nearer term.

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Idea Discussion

Commentor 1 - 2 weeks ago

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