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Towerstream Corporation Message Board

  • garysevan garysevan Nov 11, 2012 3:34 PM Flag



    Company CFO…

    "If we were to get a tenant paying $500 per month and only wanted to rent 5,000 of our locations, less than half of our total locations, we will generate $2.5 million or $30 million per year in revenue… ."

    Just one tenant and only 5,000 of 10,010 current locations with buildout continuing.

    How about four tenants?

    $120 million per year top line.

    [ $120 million x 60% gross margin rate ( low estimate ) = $72 million gross profit ]

    Projecting annual operating expenses per five markets to be $10 million ( high estimate ).

    [ $72 million - $10 million = $62 million operating profit ]

    Estimating 60 million fully diluted common shares outstanding.

    $62 million / 60 million shares = $1.03 per share

    An industry multiple of 20 yielding $20.60 per share.

    And, again, just four tenants of dozens of potential such overall.

    A conservative $500 per month. Less than the $600 average. [ From $200 to $1,000 per month depending upon the involved market specifics. ]

    Just 5,000 of 10,010 current locations with buildout continuing plus targeted expansion to 25 to 30 markets.

    Numbers exclusive of backhaul service. [ From $1,300 to $1,600 ( and up ) per month depending upon market specifics and port capacity.]

    Numbers exclusive of core operations.

    Numbers exclusive of Wi-Fi offload.

    Eventual trading levels of $40 per share being the least of it.

    Coming cash flow realities negating the need for additional operating and growth/expansion capital either debt-based or equity-based.

    As for a buyout?

    The Tower Companies are watching closely. Waiting for the moment that carrier partner details are made plain. The point at which the associated cash flow goes live and ramps up.

    Once Towerstream`s version of the Hetnet business model proves up the suitors will be active.

    Offers on the table.

    The focus right now being the Big Six/Big Five carriers with MSO`s and internet and MVNO`s yet to be targeted.

    Wi-Fi offload and small cell colocation plus backhaul services.

    The truly massive top line and bottom line potential overall being not lost on potential suitors and as we've said over time it`s patently obvious that management has been deliberately targeting a buyout from the get-go.

    The catalyst being the first carrier partner to flip that switch.

    Getting the cash flow underway.

    Whole new ballgame in evidence!

    And the shorts tried their collective best but to little avail.

    The stage set for our hedge fund friends to be squeezed dry.

    An any time/moment proposition.

    The flipping of a switch.

    Continuing to hold tight!

    Sentiment: Strong Buy

    This topic is deleted.
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