Charlie Bottle

Four Reasons Why SBA Communications Is Ripe for a Price Correction

Absolutelly, althoug I think the stock will fall on its own weight big investment firm analysts are completelly beholden to these guys and will not bite the hand that feeds them.

How low do you think AMT will go?

American Tower: Leaning Tower of Trouble

Sreeni, good article.

I agree these tower plays are extremly overvalued, no matter how you look at it (including cashflow) and bound for a correction. AMT's competitor (see my article seekingalpha.com/artic...) is more vulnerable because it trades at even higher multiples, itis more levered and has shorter term maturities on its debt.

JP Morgan Initiates Coverage on Wireless Tower Companies

Unbelievable that JP morgan is bullish on SBAC based on trading at a 7X 2010 earnings?

SBAC is trading at an astonomical 14X TTM EBITDA. TTM EPS is -0.31 (a loss). This company has been public for 10 years and has never turned a dime in profits.

This is eally just an over valued and overleveraged real estate business with 90% debt and 10% equity and dent of over 7 X EBITDA.

This business has been built on financial engeneering to take advantage of lender and investor gullability and is coming to a griding halt. When SBAC goes to refinance its debt in 2010 (like AMT has done this year) there will be no CMBS market to shove this paper on, if it manages to roll all of the debt (which is doutful) its financial costs will double taking it deeper into the red, we'll see what the 2011 profits look like then.