Hello trade-king, I hope you guys are making money and making those wallets even bigger but as usual you have to be very careful with this markets we are going to face, this markets look very weak and i see a downside potential to the 134 level and possibly the 125 but don't worry if you pick the right stocks to go long you don't have to worry about the volatility and downside of the markets. Now this is my stock picks for 2012. This blog i want to start with my favorite one which i been trading for a while now and which we are going to discuss in this forum.

  • Now the first one i will mention but wait before buy in it is Metro PCS.
  • MetroPCS shares appear undervalued in a number of ways. The price-to-earnings ratio is just around 9 times earnings, which is well below the market average of nearly 13. It is trading close to book value, which is $8.09 per share and for less than half of the 52-week high.
  • A number of large telecommunication companies are looking for acquisitions in order to increase spectrum bandwidth. Some analysts believe MetroPCS is a likely takeover target since a buyout could quickly benefit the acquiring company with more bandwidth and a larger customer base. A takeover offer for this or even another similar company could spark renewed interest in these shares.
  • The average analyst target for MetroPCS shares is $12.31. If the stock hits that target, it would provide investors with gains of nearly 50%. In the past few months, these shares have tended to find support at about $8, so it looks like any additional downside is probably limited from current levels.
  • MetroPCS recently announced it would raise prices from $60 to $70 per month for its unlimited plan. Even at that level, this plan remains one of the most competitive in the industry and it still offers consumers these rates without the contract commitment. Because of this, it's not likely that the rate hike will lead to significant service cancellations. At the same time, the extra $10 per month multiplied by the large customer base could significantly boost profit margins in the coming months.
  • This stock also looks undervalued when compared with its peers. Here are some data points for MetroPCS from Yahoo Finance and below, a couple of competitors which make this stock look like a relative bargain and personally i believe this company is going to sky rocket. My exact entry is up to you but i believe this company is going head a bit lower for the overall weakness in the markets and at 8.15. Now lets take a look at the chart and then well discuss the income sheet, Balance sheet, Cashflow and we in depth Comparison with its competitors 

    Now this is just a simple chart, i will post later in this forum a video with all the technical's i use but for now lets tell a story of the chart of what happen. Now they are two important things i want to mention first of all just know Sprint is looking to buy Metro PCS for its spectrum which there is a spectrum war going on, which the government said they are going free up spectrum they use and auction it but that's years to come for now know this small companies like Metro PCS and Leap wireless are under watch, of course then there is that fail attempt with AT&T and T mobile which the government stop it because it was going create a monopoly, which only favors my case. Now see the major drop of PCS that was due for the market correction of 2011 and poor earnings but recently PCS has change its adverting structure, which as helped it have a higher customer base but for now look at that drop. Now it was because of the overall markets but at that time PCS was overvalued and no new news of sprint take over brought its markets down. As you see from the level 18 to 9. Now the 2 story i wan't to discuss is that 2 drop as you can see in feb 17 now what happen there is that sprint took its offer down because at 12$ a share it was to expensive to buy and remember in a take over they had to pay 30% royalty so that would have been 15$ a share so about 4billion in cash and if you checked how much cash sprint has is about 5.4 billion now wise decession i think it was. Now this news took the markets down and plus the overall weakness in the markets. For now well leave it as that but i would like to hear you're comments and thoughts about this company and word of advice position you're self for this stock before earnings or a right price you can risk but the entry is up to you.