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SBAC - A long way down for these cell phone tower operators

07/04/2010 12:50 PM by Hesperian

SBAC and CCI both come up on the Altman screener, and both have crushing amounts of debt with little in the way of earnings. There's some heavy insider selling in CCI.

Technically, both look fragile, and the downside for a short is limited: CCI has a gap at 38.5ish that might get filled on any market rally this week, but if it squeaks past that (doubtful), resistance seem absolutely firm at 40.00. SBAC also has a gap at 34.75ish (eyeballing it here) that could get filled, but it also dipped under its 200 day SMA, so if it closes past that this week, then you don't have to worry about the gap being filled.

We would have to have a stock bubble of 1999 proportions to get CCI past 40 and SBAC past 37, IMO. A lot more likely is CCI at 30 and SBAC at 25 within the next month or so.

I will probably be placing short sell orders for both of these stocks this week.

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  • 07/05/2010 01:21 AM by Dave Pinsen

    Interesting. SBAC looks like the worse of the two to me. I might short or buy puts on it myself.

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