Towerstream Corporation (NASDAQ:TWER) shares rose 2.97% to $2.43 but is still hovering close to its long-term lows. The company has a market cap of $10.26 million at 4.10 million shares outstanding. Shares have been trading in a 52-week range of $2.02 to $43.00 so price is hovering close to the bottom.
Towerstream Corporation is a provider of fixed wireless services to businesses in over 10 urban markets across the United States. Its fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. In addition, the company installs equipment on the rooftops of the buildings in which these customers operate.
In particular, the company operates in locations such as New York, Boston, Chicago, and Houston. It is currently working with new technology called ONet, which can install a set of signalling equipment on the roof of building and then offer wireless internet to all of the buildings within range of its equipment. With that, Towerstream Corporation is able to target tall buildings in major cities in order to employ a wider range and a larger customer base. The company installs its equipment on these buildings then offers its services to the customers included in this range at around 40% cheaper prices compared to competition.
As of this writing, Towerstream Corporation has setup this technology at the top of the Empire State Building in New York City, MetLife, and Hancock skyscrapers in Houston and Boston, and the Prudential Center and the Aon towers in Chicago and Los Angeles. Management is still eyeing another 4,000 qualified buildings and over 145,000 tenants.
So far, the company’s financials are looking promising. Revenues came in at $6.73 million and year-over-year earnings growth is at a solid 38%. However, the company still has around $35 million of debt on its balance sheet so it may take some time before it recovers capitalization.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.
