Everywhere you go, if you’re in the US, you can pretty much get good cell phone coverage 24/7. However, outside of the United States, this isn’t at all the case. Consider South America. According to recent data, South America is in need of well over 300,000 wireless towers just in the next 18 months.
This is a huge growth opportunity and there are very few pure play options for investors to take advantage of it. TOWTF is a prime example of this opportunity and the stock is just starting to heat up.
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.
To get a sense of the opportunity that may be presented by this stock right now, consider a couple of the recent examples from the same sector:
AMT used to trade at $1.50 a share. Now, the stock is regularly printing $150/share.
Next, take a look at SBAC. That stock used to trade for just $.40 per share. Take a look at where it is now. Almost 58,000% higher, up near $175 per share.
Naturally, with a market cap of under $13 million, this one could be a wild ride in both directions, so have your seatbelts on.
But the upside here is potentially enormous. And the company has been active trying to harness some of that upside of late.
Late last month, the company made a critical announcement, announcing the site acquisition of 80 new wireless tower sites in Argentina. Each wireless tower site consists of leasing of the underlying real-estate as well as the rights to build wireless cell towers. According to the release, “The Company anticipates that construction on these sites will commence shortly and will significantly add to its current portfolio of over 40 wireless towers in Colombia and Argentina and backlog of over 300 search rings.” This is the type of expansionary attitude love to see the company at this stage. The company is also been building out its team: “Tower One Wireless Corp (CSE:TO) (OTCQB:TOWTF) announces it has retained Mr. John Logiudice, a telecom senior executive with over 20 years of experience with Ericsson and Sprint-Nextel, to head its Tower Services division.”
This is also an important signal, because it suggests the company has the ability to capture true talent in the space. That creates a sense of legitimacy and credibility, massively increasing the potential upside that is possible for the stock. Finally, just a few days ago, the company announced a definitive agreement to broaden its footprint in the Mexican market space. That agreement includes a bridge to a master lease agreement with AT&T, potentially exposing the company to an enormous catalyst.
As a basic overview, the business works like this: each tower can cost around 75,000 bucks to build, and generates around 15,000 bucks each year for any given operator, with the potential for multiple operators using the same tower. That means, even in a poor scenario, the tower is a breakeven investment just 24 months in, with everything gravy beyond that.
Technically, the chart looks extremely promising right here. Shares are coming off a massively oversold reading it RSI, and a major breakout above an existing downward trend line on huge volume. This massive influx of trading interest suggest the crowd is starting to get behind this one and a buzz is building.
The move took the stock back above the 50 day moving average which is flattened out and is threatening to turn bullish, and it also sparked a massive bullish breakout signal in the MACD indicator.
All of this is about as technically bullish as it gets. And with this tiny market cap and a new extension of that buzz and that new interest could result in a potential explosion of upside interest given the huge potential growth that may lay ahead for the stock.
About TOWTF
TOWTF (Tower One Wireless Corp.) 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.
Key Points:
- TOWTF currently has a portfolio of 40 towers, with 15 additional ones under construction and 350 at the site acquisition and permitting stage.
- TOWTF has added strong talent and major capacity in recent days.
- TOWTF is coming off an RSI trough under 30, pointing to a massively oversold stock now heading back the other way.
- TOWTF just recorded a MACD Bullish breakout, suggesting a technical change in trend.
- TOWTF is a potential emerging leader in the wireless tower growth boom.
