Andrew454

Crown Castle and the Tower Operators: The Foundation for Next-Gen Wireless

All 3 of these companies have traded down lately, and I have unfortunately watched them fall and paid the price. I was trumpeting SBA as a great buying opportunity after AIG, since I thought, on top of the great operating attributes there was also the acquisition possibility, but I have been pretty surprised to see how poorly SBA and CCI in particular have held up in recent weeks. All three of these companies have done a great job of playing the cost of capital arbitrage game in recent years, selling debt cheaply and buying back stock by the boat load, but I am wondering if the reason for the precipitous drop might have to do with the concern that this game is coming to a close? It wasn't too long ago that people looked at all three balance sheets with trepidation at the beginning of the decade, but at the same time, if it made sense to buy back the stock two years ago when it was double the price, it should make even more sense now if they have the liquidity. Do you think investors are pricing in a refi risk on some of the debt in these companies, and, despite the ridiculously high margins, do you think that this is at all justified?