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Monday, March 19, 2012

Towerstream $TWER Potential Value

Today, I am going to explain what I think the value of Towerstream at this very moment and then in 1 year.

Crown Castle recently acquired Next G (a private company similar to towerstream).  Next G has 7000 nodes built.  Crown Castle paid $142,000 per node.  7000*$142000=$994,000,000.

Towerstream currently has 1500 nodes.  1500*142,000=$213,000. Tower has 55 millions shares.  So Tower is worth 213/55= $3.87.

Towers said they will build an additional 3000 nodes at a minimum over the next 12 months. So the market cap based on the price paid by Crown Castle for Next G would be 4500*142,000=$639,000,000. Divide this by 55 million shares and we arrive at $11.61.

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