Friday, July 18, 2014

Is T-Mobile Worth More?


With once struggling domestic wireless provider T-Mobile US  (NYSE: TMUS  ) now worth over $26 billion, investors should wonder if the stock has any value left. The company is rumored to be a buyout target of Sprint  (NYSE: S  ), yet its quick rise from $7.50 to nearly $33 in a span of two years should raise valuation questions.

On the backs of wireless mergers, including its own consolidation with Metro PCS, T-Mobile is now secure in a strong fourth position of the domestic wireless market. The stock now trades at nearly 1 times revenue estimates, suggesting that all of the easy money has already been made. Further, notable investor firm Omega Advisors exited its position during the first quarter further, questioning if the stock has upside value.

Read the full article here.


Disclosure: Long T. Please review the disclaimer page for more details. 



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