$6.01

0.14 (2.39%)

2/9/2010 4:01 PM

MetroPCS Communications, Inc. (PCS)

CAPS Rating:

The Company offers wireless broadband personal communication services, or PCS, on a no long-term contract, flat rate, unlimited usage basis in selected major metropolitan markets in the United States.

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What the Community Thinks

Total Members

323 Outperforms

30 Underperforms

All-Stars

106 Outperforms

15 Underperforms

Wall Street

12 Outperforms

3 Underperforms

Members bullish on PCS are also bullish on:

Members bearish on PCS are also bearish on:

Ticker Tags

Telecom Services - Domestic (7), Wireless Telecommunication Services (41), Distressed (1597), Value (1901), S&P 500 (499), Telecommunication Services (124), Small Cap (1645)
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MetroPCS Communications, Inc. At A Glance

Current Price:	$6.01
Last Trade Time:	2/9/2010 4:01 PM
Open:	$0.00
Previous Close:	$5.87
Daily Range:	$5.83 - $6.05
52-Week Range:	$5.52 - $18.98
Volume:	6,074,546
Market Cap:	$2.12B
P/E Ratio:	13.04
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Stock Trends

PCS VS S&P 500 (SPY)

News & Discussion Boards

Other News Headlines for PCS

Verizon: Bernstein Upgrades; Sees Possible iPhone Boon
2/9/2010 10:40:00 AM -
Pittsburgh Law Office of Alfred G. Yates Jr., PC Announces Class Action Lawsuit On Behalf of Shareholders of Terex Corporation (TEX)
2/5/2010 8:30:00 PM -
LEAP: Sell It, Says J.P. Morgan; Says Deal Not Likely
2/5/2010 3:31:00 PM -
Wireless: What Happens If T-Mobile Goes Public?
2/5/2010 2:34:00 PM -

More Headlines...

Top Bull Pitch

Recs

2 MetroPCS Communications, Inc. (PCS)

Avatar CaptBS (97.81) Submitted: 9/14/09 2:06 PM

I like MetroPCS as a speculative outperform because of their role as a disruptive, dark-horse player in the wireless market. Consumers have been complaining for years about the tactics that the major U.S. wireless carriers have done business with them: long-term contracts, complicated plans with var...More

Replies: 0 | Reply | Permalink

I like MetroPCS as a speculative outperform because of their role as a disruptive, dark-horse player in the wireless market. Consumers have been complaining for years about the tactics that the major U.S. wireless carriers have done business with them: long-term contracts, complicated plans with varying rules on daytime/nighttime/weekend/family minutes, nickel-and-diming on "activation" and usage fees (especially text/picture messaging), and so forth. MetroPCS is attempting to capitalize on this widespread discontent by offering cheap, no-contract, easy-to-understand wireless plans, most of which feature unlimited national calling and text messaging. In essence, they are striving to become the one cell-phone company that actually delivers what their customers want.

In pursuit of that lofty goal, MetroPCS faces quite a few obstacles as a smaller, less-established carrier. Their coverage is (as their name suggests) mostly limited to major metropolitan areas, their finances (1.7 debt/equity, negative tangible book value) leave something to be desired, and their 2Q09 results were disappointing. However, I think Metro's focus on heavily marketing their simple, cheap "unlimited" plans during this recession has resonated with consumers, and as a result there is pressure mounting on the major carriers to make their offerings more user-friendly in order to retain their expiring contracts. If the likes of Verizon, AT&T and Sprint are too slow or too out-of-touch to respond to this growing demand (and history suggests that they will be), MetroPCS will be one of the primary beneficiaries of the customer churn that will follow. And if Metro can successfully partner with / acquire other upstart and regional carriers (e.g. Leap wireless) to expand their coverage area, their unlimited plans are going to be all the more enticing.

Bottom line: MetroPCS offers something that many people clearly want, and has the potential to be a disruptive force in its sector. At under $10, it is a pretty decent speculative buy.

Top Bear Pitch

Recs

1 MetroPCS Communications, Inc. (PCS)

Avatar LongShortIndex (98.67) Submitted: 4/30/09 9:43 PM

This is a multipart communications play.
Sell short AT&T (T), MetroPCS (PCS), Leap Wireless (LEAP)
and
Buy Verizon (VZ), Sprint (S), United States Cellular (USM)

T, PCS, and LEAP are all trading at ridiculous levels higher than book value especially when compared to some of its peers (see buy list...More

Replies: 1 | Reply | Permalink

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Recs 0 (PCS) sindhwani (< 20) Submitted: 2/01/10 4:30 AM : Start Price: $5.66 PCS Score: 7.04 there are orders flowing in. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (PCS) jed71 (77.47) Submitted: 1/29/10 11:08 AM : Start Price: $5.55 PCS Score: 9.53 Boy, these guys really have been taken to the woodshed and beaten thoroughly since April. Quite a wireless discount , if you ask me. :) One of the main reasons I like this company is the no long term contract, flat rate, unlimited usage for its wireless customers. I am no fan of the industry standard 2 year contracts so this type of service really appeals to me. In addition, their service is offered with no hidden fees or taxes. They have pretty stiff competition in this space, but I do like the fact that they have carved a niche for themselves. I am not saying they are the only ones to offer this kind of pay-as-you-go service, just saying they really seem to focus on offering a flat rate service that is both easy to understand and use. Financially speaking the firm sports some decent numbers. 2011 projected earnings are around $.45 per share giving a forward P/E of about 13. Price to book is around .87, price to CF around 2.8 and price to sales of .6. All seem to indicate an oversold level in the stock. Debt seems pretty high at $3.5BB but given their operating margin is over 15%, it's my belief they can handle the interest expense on debt. Cash flow should also continue to improve once their capiatal expenditures begin to level out. Once cash flows begin to improve, though, it would be nice to see them work down some of that long term debt. Overall, not a bad firm. What was once an $35 stock is on sale for $5. $10-15 seems reasonable within the next few years given their growth profile and pretty strong margins. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (PCS) jbarnettj (< 20) Submitted: 1/28/10 10:21 AM : Start Price: $5.60 PCS Score: 9.13 Low priced, low PE, growth of smart phones should give PCS upside from low 5.5 to 6 price point. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (PCS) mrindependent (99.29) Submitted: 1/27/10 10:57 AM : Start Price: $5.68 PCS Score: 7.58 Although the business model of MetroPCS has some decided weaknesses, I think the continuing selloff of this stock has been overdone. The company appears to be solvent and profitable - which gives it a leg up on many of today's "high flyers". At 1 times book value, I think there is more upside than downside. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (PCS) SenseA (26.28) Submitted: 1/18/10 8:29 AM : Start Price: $6.30 PCS Score: 1.03 Low cost unlimited plans in busy metro areas. However this company is rumored to have poor customer service and bad coverage once you get more rural. They sell low budget phones and plans. Anyone who can afford a better service will probably skip this company. Still I say this company outperforms for a couple weeks. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
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Wall Street

Results 1 - 15 of 15

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Top Pick	Member Name	Member Rating	Start Date	Call	Time Frame	Start Price	Stock Gain	S&P Gain	Score	Pitch
	TrackJimCramer	< 20	01/21/10		3W	$5.99	+0.33%	-4.01%	-4.34
	TrackSoleil	93.91	01/08/10		NS	$7.30	-17.67%	-5.86%	+11.81
	TrackBernstein	87.54	12/15/09		NS	$7.25	-17.10%	-4.06%	-13.04
	TrackStandpoint	97.82	11/23/09		NS	$6.56	-8.38%	-3.16%	-5.22
	TrackCreditSuiss	93.62	10/24/09		NS	$6.94	-13.40%	-2.25%	+11.15
	TrackSunTrustRH	87.33	07/24/09		NS	$12.60	-52.30%	+10.83%	-63.13
	TrackWellsFargo	80.02	04/08/08		NS	$19.45	-69.10%	-18.38%	-50.72
	TrackRonBaron	59.71	09/30/07		NS	$27.28	-77.97%	-26.38%	-51.59
	TrackStanfordRes	85.54	09/19/07		NS	$25.49	-76.42%	-26.79%	-49.63
	TrackJefferies	82.08	09/05/07		NS	$29.10	-79.35%	-23.84%	-55.50
	TrackCitigroup	85.92	06/11/07		NS	$33.02	-81.80%	-24.89%	-56.90
	TrackBearStearns	84.85	05/29/07		NS	$36.14	-83.37%	-25.39%	-57.98
	TrackBofASec	94.61	05/29/07		NS	$36.14	-83.37%	-25.39%	-57.98
	TrackUBS	87.99	05/29/07		NS	$36.14	-83.37%	-25.39%	-57.98
	TrackLehmanBros	85.06	05/14/07		NS	$31.50	-80.92%	-24.86%	-56.06

Results 1 - 15 of 15

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