New Site Build From the Largest US Tower Owner $ESTW.V (EasTower Wireless) just announced another new site build for the largest national tower owner in the US. This is already the third deal with large US tower owners in the past couple of months (the last one being $ESTW.V’smartest new build). Continued deals with some of the largest US companies really show that $ESTW.V is able to retain its clients over the long term.
$ESTW.V’s CEO also said that the federal government's $65 billion dollar commitment to providing broadband infrastructure development has been an essential driving factor for a steady influx of contract opportunities, providing a recession-proof stream of revenue opportunities during the current market conditions. With demand set to stay high and $ESTW.V on track to continue scaling and increasing the number of highly-skilled crews, the company is well-positioned for growth going into the future.
https://ca.finance.yahoo.com/news/eastower-wireless-wins-additional-build-120000170.html
Their Q1 2022 financial results were also recently released, and they've shown some growth over the quarter (I’m expecting most of the growth to come in Q2 due to all of these large site builds).
- YoY revenue grew by 11% to $425K
- Cost of sales were $206K (gross profit of $219K with a substantial margin of 52%)
- Cashed up with $1.1M in cash or cash equivalents which is very good as there's an upfront cost of $75K to train new crews.
Overall, considering the market cap of $5M and all of the new deals they've secured, their valuation does not reflect the company’s fair value and growth. I'm keeping an eye out for future developments and the following quarterly report, which will include all these large-scale site builds.