Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shareholders of wireless services provider MetroPCS Communications
So what: In a situation very similar to that of Leap Wireless International
Now what: Weakness in both Leap and MetroPCS's figures today show us how little room there is for second-tier wireless service companies (i.e., very little). In the case of MetroPCS, the company is at least still profitable, though estimates are falling fast. MetroPCS is considerably less levered to debt than rival Leap, but I don't see any reason to expect its three-quarter streak of earnings misses to come to an end any time soon. As such, like with Leap Wireless, I'm going to advocate avoiding MetroPCS like the plague until the company proves me wrong.
Craving more input? Consider adding MetroPCS Communications to your free and personalized watchlist to keep up on the latest news with the company.