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Wireless Wars: The Billion Dollar Tech Boom no one is Talking AboutLONDON, June 19, 2017 /PRNewswire/ -- There's an explosive new real estate in town. It doesn't have any walls, and it's driven by our voracious appetite for technology and connectivity. But the biggest opportunity is a highly profitable $75.6-billion niche segment few investors know about. When the wireless revolution first swept across the U.S., most investors were skeptics, thinking cell phones were for the already-rich, or for drug dealers. But those that saw this opportunity for what it was and what we see now,made billions. And they are still making billions today. Companies included today are Crown Castle International Corp. (NYSE: CCI), American Tower Corp. (NYSE: AMT), SBA Communications Corp New (NASDAQ: SBAC), Shaw Communications Inc. (NYSE: SJR), TELUS Corp. (NYSE: TU) Ronald Reagan dished out public domains to private upstarts like candy in the 1980s-via lotteries, and then they were re-sold to telecoms giants, such as AT&T. Mark Warner of Colombia Capital, dubbed 'The Man with the Golden iPhone', made $150 million on these lotteries, and he was just getting started. He wasn't wealthy, and he wasn't a drug dealer-he simply saw the coming revolution. Then he became a U.S. Senator. Likewise, Steve Case-Washington's new 'tech whisperer' made his fortune when he founded AOL. He's worth $1.39 billion today. But that was the beginning of the wireless revolution. Now the quickest and purest way to profit in this industry is in a niche segment that you might have been taking for granted. Three companies in this most profitable niche have seen crazy 10-year returns for early-in investors.
Still, today, only 25 percent of the world has access to the vast global communications network. But the wireless revolution that swept through the U.S. and minted millionaires out of the investors in these three companies is now sweeping through South America. And one little-known company is next in line to take advantage of this explosive opportunity. They are in the same profitable niche as the three companies above: Cell phone towers. That company is Tower One Wireless (CNX: TO + TOWTF). The three little-known companies that cashed in on the cell phone tower niche by building 450,000 towers and rising to a combined market cap of more than $100 billion were just the beginning. Tower One Wireless is next in line to repeat this in South America. Only 100,000 cell towers have been built so far in South America - a far cry from the 520,000 towers needed by 2020. That's 420,000 TOWERS that need to be built in the space of just 3 years! That's 5X growth! South America has been slower than other regions in migrating towards a TowerCo model-but now that wireless is affordable across the globe it's about to roll out big. And that represents a huge opportunity for early-in investors. Independent tower companies are springing up to meet massive demand for cell towers by wireless companies scrambling to compete with each other to provide unlimited wireless Internet and mobile phone data. These most profitable of wireless 'landlords' build thousands of cell towers and rent them out to wireless providers scrambling to rapidly increase their capacity and coverage. This type of business model is usually kept top secret because it generates so much net profit and continuous cash flow. There are only 4 publicly-traded cell tower companies on the planet, and Tower One Wireless (CNX: TO + TOWTF) is one of them. Founded in 2015 and sporting a market cap of just $11.23 million, Tower One is the only small-cap entry point into the industry, period. The three others are basically in the same business; huge multi-billion-dollar market cap companies. Naturally, the law of large numbers limits how quickly they can grow, and stock prices limit first-in opportunities for investors to make outsized gains. According to a Mott McDonald study on South America's Cell Tower Investment Opportunity, rapid wireless subscriber growth and heavy investments in LTE rollout make South America a fertile investment opportunity for tower companies. But even more importantly for investors, this is one of the easiest niches to mke money in. The simplicity is elegant: You either rent or buy land, you have a fixed cost installation for your tower infrastructure, and then you rent your installation to giant telcos. A single tower can serve up to 4 telcos, while the tower company sits back and enjoys pure profit for years and years. Very few industries can boast of such a clear-cut path to profitability. In fact, it might be the most profitable real estate investment by square foot on the planet. This is the model that is most likely to attract C-level executives from Fortune 500 companies to South America. Here are 5 reasons to watch Tower One Wireless (CNX: TO + TOWTF) very closely: 1. Little Competition The margins in this business segment are potentially massive. We are talking about 80 percent EBITDA margins, much higher than typical margins by other sectors.
The growth runways for Tower One Wireless (CNX: TO + TOWTF) are fantastic. Basically, the more towers the company builds, the more valuable it becomes. South America needs 420,000 towers built over the next three years. Tower One expects to collect ~$180k in profit from each tower. Tower One Growth projections: Current: 11 towers Market cap only $11m (25 towers in development/construction) Q1 2018: 100 towers Q1 2018 Fair value would be $60.4m Market Cap ($504k value per tower). That's a more than 6x increase from today's Market cap. Q1 2019: 250-300 towers Q1 2019 Fair value would be $200-300m Market Cap ($504k value per tower). That's more than 22x current market cap. This is a potential multi-bagger in just two years.
Tower One is led by a world-class team and industry insiders with high-level experience in the top echelons of the telco industry. Rolland Bopp (Advisor) - Roland is a former CEO of Deutche Telekom USA known today as T-Mobile which is part of Deutche Telekom AG of Germany. And, knowing how profitable the cell phone tower market is, he's joined the team and headed toward a billion dollar pay day. With 60 percent of shares in the hands of its management, you can be sure that supply will remain tight, meaning higher share prices.
It takes just 30 days to build out cell tower infrastructure, and by day 45, you're already collecting cash flow. A typical contract runs for 10-20 years, so there is excellent predictable revenue visibility with no down years. Honorable Mentions in the Telco Space: Shaw Communications, Inc. (NYSE: SJR): Shaw is really shining. There are major catalysts here for this Calgary-based communications company, whose shares have recently jumped after selling of its data center business and buying wireless airwaves. Shaw is selling 100% of its wholly-owned ViaWest, Inc. subsidiary for about US$1.675 billion to Peak 10. Shaw is also the parent of the newly-acquired Wind Mobile, now 'Freedom Mobile', which will likely squash the competition with its LTE network as Canada's are craving better connectivity. Telus (NYSE: TU): This is the third-largest telco in Canada, and for the past several years, it's outperformed all of its peers, including on the NYSE and TSX. And significant growth is in the works for the coming several years; in fact, we're looking at the fastest growth in Canada. Dividend yields should hold at greater than 4%. By. James Burgess of Oilprice.com Legal Disclaimer/Disclosure from OilPrice.com: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Oilprice.com only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report. All content contained herein is subject to the terms and conditions set forth in the original article posted on Oilprice.com and subject to the terms and conditions therein. DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements. Contact Information: SOURCE OilPrice.com |