Yash Bhatnagar Venkat Manne

PCS Recommendation Buy at: $8.40 Sell at $12.30

PCS Financial Background Provides Telecommunication services to many metropolitan areas in the USA, currently the fifth largest telecommunications network in the United States Serves approximately 7.3 million customers Headquartered in Richardson Texas

Basic Numbers 52 week Vol / Avg M/9.12M Mkt cap 3.02B P/E EPS 0.44 Shares M Beta 0.73 Inst. own 64%

Reasons to buy Increasing demand for prepaid cell phone services makes the shares attractive, said Barron's in its May 17 edition. MetroPCS shares closed at $8.72 on Friday on the New York Stock Exchange but could reach $12 next year, according to the financial weekly. Prepaid wireless subscribers grew 16 percent in the first quarter of 2010, to 57 million, well above the 3 percent growth in postpaid monthly contracts. Rumors also persist that MetroPCS is interested in buying rival Leap Wireless International (LEAP.O).LEAP.O

Reasons to buy Revenues grew by 22% to $971 million; analysts had been expecting $942 million for the quarter.

Competition Leap Wireless In the past one month their stock value has decreased 9.02%. Increased rumors on being aquired by MetroPCs Vodafone Group Stock price has decreased almost 17% in last six months Face increased competition from saturated pay as you go telecom market