Thu, Oct 23, 2014, 2:23 PM EDT - U.S. Markets close in 1 hr 37 mins

Recent

% | $
Quotes you view appear here for quick access.

Crown Castle International Corp. Message Board

  • Nemesis_editors Nemesis_editors Apr 26, 2012 7:58 PM Flag

    With a PE of 108, why invest here?

    Can anybody explain why anyone is investing in a company with such a high PE? Are the earnings growing super fast? What's the reason please...

    I don't follow this company, but I took notice cause it's been added to the SP 500 and I invest in that.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • PE? You need to start learning more about companies. High PEs can actually mean that a stock is set to rise because people are expecting higher earnings in the future. as for CCI, it is basically a REIT and PE is meaningless. You need to look at cash flow and debt service coverage. Eventually, CCI needs to kick out a major dividend.

      • 1 Reply to originalbaked
      • It's also helpful to know something about the tax code. As long as CCI can shelter income from taxes they'll continue to be a C corp, which lets them invest the cash flow in growth and stock buybacks. When the management team no longer sees growth opportunities, CCI would convert to a REIT, like AMT did. Of course, then the team runs the risk (like Global Signal years ago) that a growth oriented C corp could buy them out.

 
CCI
84.44+0.87(+1.04%)2:23 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.