Towerstream $TWER traded horribly yesterday. But a couple of positives can be taken away from trading yesterday. One: the previous days price gap was filled so the pricing action going forward should be more smooth. Two: likely lost all the angry shareholders from the secondary offering last summer.
After moving up in the high 6's during the premarket session, Tstream opened the regular session in the high 5's and traded down all day long. Hopefully if you have read my other posts. And, as I said in those posts, now that a contract with a national carrier has been disclosed, a better way to value Tstream is price per "node".
This morning it looks like it wants to move higher. I suspect it will move sideways the rest of the week as it forms the "handle" part of a nearly 1 year Cup. For those of you that don't know, a cup with handle is among the strongest technical patterns that can be seen. Mostly, you see these quite easily and more frequent in mid caps. A breakout of a cup with handle pattern is usually a sign that institutional buying is beginning.
If you are holding positions in Tstream, and you can hold it for a while, I think you will be handsomely rewarded.
Take a look at a 10yr chart of American Tower (AMT). By the way, AMT officially gave Tstream its name.
10 years ago AMT was about the same price Tstream is today. Imagine you had purchased 10,000 AMT for $5 for total of $50,000. Fast forward and today your investment is now worth $640,000 and paying you $3,000 per quarter in dividends. I think the same metrics can be applied here. Obviously much can happen between now and then, but Tstream IS the evolution of the old fashioned tower companies.
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JWells
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