Metro PCS: An Undervalued Wireless Play?

The wireless sector continues to exhibit strong growth and earnings results as new technologies associated with the cellular phone continue to permeate into the American way of life. As is expected, companies like Apple Computer (NASDAQ:AAPL) that have leveraged themselves into this sector are enjoying plush valuations as a result. One of the companies that is entering this sector as a consumer value is Texas-based Metro PCS (NYSE:PCS), a cell-phone service provider offering a $40 per month service plan that puts it amongst the least expensive plans in the business. The company also offers prepaid plans and unlimited usage plans so it also competes with the more standard fare of the cell phone service providers.

With a market capitalization of $4.6 billion and earnings in the prior four quarters of around $214 million, the company is trading at a trailing PE of around 21.6. This is a substantial PE premium to competitors like AT&T (NYSE:T) (much larger business, much slower growth) and Nokia (NYSE:NOK)(similar circumstances to AT&T). So what justifies this PE premium and do Metro PCS’ future prospects justify that premium or perhaps an even higher one?

AP NYC Metro News

(AP) — TEXAS CITY, Texas - More than two months after oil gushing from a blown-out well on the ocean floor first reached Louisiana, the relentless spread of crude has now washed up on every Gulf state after a bucket's worth of tar balls hit a Texas beach. The crude is still moving, but the fleet of skimmers tapped to clean the worst-hit areas of the Gulf of Mexico is not. A string of small storms has made the water too choppy for the boats to operate for more than a week off Florida, Alabama and Mississippi.

Hollywood Movie {Metropia} First Look

An innovative look at a frightening Europe where the world runs out of oil. A huge subversive network created by all the different subway together under Europe. Roger (Vincent Gallo) from a suburb of Stockholm avoid tube because he finds it worrying. Sometimes when he is too close to the earth, he hears a strange voice in his head. A day trip over Roger truth that his life is forbidden in every detail. Breaking free, he combines forces with a super-model Nina .