Remarkable Potential in the Cell Tower Space (SBAC,TOWTF,AMT)

Alan Masterson - April 18, 2018

SBA Communications (NASDAQ:SBAC) is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America. By “Building Better Wireless”, SBA generates revenue from two primary businesses: site leasing and site development services.

The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts.

The stock has been consolidating in a lateral range that could be eventually setting up for another breakout higher. The stock is an old school name in the group, with a ton of gains already under its belt, doubling in just the past two years. Shares recently found support in the $160 area, and would have new all-time highs in place on anything above $178.

Tower One Wireless Corp. (OTCMKTS:TOWTF) is a Canadian company that focuses on owning and operating wireless telecom infrastructure sites in South American markets that are experiencing strong growth.

Its primary focus is property selection, architecture and engineering, and zoning acquisition of wireless infrastructure, including towers.

Its core business is providing access to its infrastructure to (FOR) major national and multi-national cellular carriers through long-term leases (10 plus years). With the migration to fourth generation (4G) long-term evolution (LTE) networks in Colombia and Argentina, there will be strong demand for additional towers, with growth expected be over 1,000/towers a year in each country.

If there is anything in this space that represents a new kid on the block, it’s TOWTF. The stock is still trading in the pennies, at around $0.17/share. But recent action has been bullish, with shares just breaking above the 50-day simple moving average on rising volume. This may be one to watch.

American Tower Corporation (NYSE:AMT), one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 150,000 communications sites.

AMT used to trade at $1.50 a share. Now, the stock is regularly printing $150/share. Like SBAC, this is a well-established name in the space. The stock has been relatively dead money for the past 6 months, but could find traction and get back on its horse on a move back above $150/share. Shares are currently sitting around $140, matching the 200-day simple moving average on most days over the past week.

Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email ([email protected]) or his Google+ page (

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