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Wednesday, January 4, 2012

Potential Takeover Candidate? (NYSE: PCS)

Shares of PCS fell by 4.05% or $-0.38/share to $9.01. MetroPCS Communications, Inc. is trading at a price to book ratio of 1.2. This indicates that the shares are relatively cheap compared to book value which means the market is pricing in going concern value. The PEG is 0.47 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 0.73. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 4695240 shares of PCS exchange hands on a given day and today's volume is recorded at 3049594. These factors combined may make this company a potential takeover candidate. Value investors may have an eye on this one, especially if the stock gets cheaper.

MetroPCS Communications, Inc. (MetroPCS Communications) is a wireless telecommunications provider in the United States measured by the number of subscribers served.