Crown Castle International Corp. (CCI)

After yet another quarterly net income loss, I have to open a red thumb on CCI. It is sitting close to a 52 week high and poised for a large correction.

Interest Expense on their debt load is just decimating their income statement. Interest Expense in 4Q was $101MM and, in my opinion is a long term albatross. With long term debt of $6BB, their income statement just can't handle the heavy interest expense every month. I just can't see how they can get themselves to a decent level of profitability without whittling this down in a major way. And that usually means a large share dilution or some other negative steps that impact shareholders.

With intangibles of $2.5BB and goodwill of $2BB, the balance sheet is completely loaded up with fluff. All of this will have to be written off at some juncture, adding to the longer term pressure on GAAP earnings.

Some other figures... P/S 6.7, P/B 3.8, P/CF 28.6

This looks like a decent short opportunity given the lack of fundamentals to support the last year's price move. With a beta of close to 2, though, you might be in for a wild ride. Just my opinion and do your research before investing.