Towerstream $TWER carrier network rental information

Jeff Thompson Ceo of Towerstream said on the call that implementing the carrier contract within its network will only take 1 to 2 months without much money spent on the existing network.  This suggests that revenue will begin flowing to Towerstreams' income statement with a quarter. Two quarter's at the most.  With this we know that the guidance for June will be above the $7.5 million guidance for Q1.  He said Q2 will be at a good pace.

Jeff said that they are leasing the assets of the company in long term contracts. Jeff also said that economics are on a per SSID basis rental, similar to leasing a DAS channel on a DAS network.Towerstream will have approximately 5000 nodes by Q1 2013. More on the value of Towerstream later. 

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JWells

Towerstream $twer Update

The more I think about this the better I feel about it.  Today, I cannot find any upgrades or articles about what was announced on the conference call.  This suggests that prices will move higher. We will likely see at least one upgrade tomorrow.  We will likely see the upgrade with a high price target as well (high single digits).  The carrier announcement is to be in the next few weeks.  So We will see some good price action in the coming sessions.

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Thank You Kindly,

JWells

Towerstream $TWER and the coming price action

Towerstream will begin working its way up to $5 over the next few trading days to form a one year long cup. Then, when the official news is announced about the carrier deal, it will breakout in very very high volume and move into the $7-$9 dollar range.

JWells

Towerstream $TWER

As of 10 am EST. I have yet to see an article on what is really going on at Tower! This suggests that it still have a big move higher that will be driven by analyst upgrades. After that, Tower will officially announce the big news and people will realize that this companies revenues will triple within a year or so.

JWells

Towerstream $TWER Has Finally Delivered a Deal!

Jeff Thompson CEO of Towerstream $TWER said today on the quarterly conference call that within the next few weeks or even days, he will announce a carrier offload deal using Towerstreams' wifi nodes, that are close to the ground, alongside the carriers small cell radio.  The two work well together, as the small cell technology interferes with a macro cell spectrum but not with Towers nodes.  So Towers network solves the problems for carriers in highly congested areas where Tower's realestate assets are located. Essentially, Towerstream will add 3000 new nodes by the first quarter of 2013 in 5 of Tower's markets.
Jeff said that the LTE small cell technology can handle 32 simultaneous users while WiFi can handle hundreds.  LTE small cell cannot yet handle voice. Wifi has handled voice for years. For the 3,000 new nodes, Towerstream has been working with the carriers on where to place them. Jeff said that it will cost Tower between $12-$15 million for the 3000 nodes and said that the cost will go up as they bring the other carrier customers into the fold.

This is a new wave of tower companies from the traditional tower companies. Look at what your returns would be if you bought into American Tower 10 years ago.

This new opportunity will help Tower rapidly grow revenue. In fact, EPS could come in  neighborhood of $0.80 annually by ramping revenue to $100m per year. Factoring up a PE of 15, we could see TWER trade in the $11-$15 area very very soon.  In fact, tomorrow morning, I suspect that we will see 3+ millions shares trade on a stock that normally trades only 250k.  2.3million shares are short, or almost 9 days worth of volume. We will likely see large buy volume at the open. It would be good purchase if you can pick some up at less than $3.25. It will trade up all day with intermittent big volume spikes. Most of the time though,  activity will be brisk and sellers will come in to sell their $.20 cent gain.  But don't worry, try to hold on to it at least until most of the shorts get out. When volume reaches around 4 million (it may take a few days) if you MUST get out, then do it after that point. But wait for the shorts to cover. It would be much better to hold it for 9 months, or when the price gets into the low teens, I can see that Tower is now going to be, at the very least, a utility. But more likely,  a REIT structure and kick off some great dividends in the future.

JWells