Apr 04, 2012 (SmarTrend(R) News Watch via COMTEX) --
Below are the three companies in the Wireless Telecommunication Services industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.SBA Communications ranks highest with a a debt to EBITDA ratio of 7.8. Leap Wireless International is next with a a debt to EBITDA ratio of 5.9. Crown Castle International ranks third highest with a a debt to EBITDA ratio of 5.4.
American Tower follows with a a debt to EBITDA ratio of 4.9, and Sprint Nextel rounds out the top five with a a debt to EBITDA ratio of 4.1.
SmarTrend recommended that subscribers consider buying shares of SBA Communications on October 12th, 2011 as our technology indicated a new Uptrend was in progress when shares hit $36.24. Since that recommendation, shares of SBA Communications have risen 40.5%. We continue to monitor SBA Communications for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Write to Chip Brian at cbrian@mysmartrend.com
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