SBAC's Other Problem: Technicals

SBA Communications (SBAC) may one day be the MLP of the wireless space, a pipeline of towers shuttling signals on down the line.

The growth and the cash flow are there, but SBAC is nowhere near running a pipeline strategy yet. The company is burdened with debt as it continues to acquire tower after tower. Honestly, it needs to move to a REIT-type of status or MLP status as the numbers just don't add up for me. The company has a huge debt-to-equity ratio, operating income trails interest expense, insiders are selling and almost half of the assets on the balance sheet are intangible assets. The company seems to survive and thrive on rolling its debt out and filling any other voids with secondary offerings. There is another challenge in front of SBAC right now that is a bit more pressing and that is the technical picture....239 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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