Communications Sales & Leasing Acquires Tower Cloud
Ticker.tv News | Jun 21, 2016 08:20AM ET
Communications Sales & Leasing, Inc. (NASDAQ:CSAL)
Communications Sales & Leasing, Inc. (CSAL), a real estate investment trust, yesterday announced that it is acquiring Tower Cloud Inc. for $230 million in cash and stock.
Communications Sales & Leasing, Inc. CEO’s Comments:
“Tower Cloud significantly expands our backhaul network and greatly accelerates our entry into the high growth small cell and dark fiber businesses,” said Kenny Gunderman, President and Chief Executive Officer of CS&L. “We continue to grow our wireless carrier relationships across all asset classes and are seeing an increasing number of opportunities arise as carriers densify their networks and look toward the deployment of 5G and related technologies.”
CSAL Technical Analysis
CSAL opened trading yesterday at $27.71, which was up from the previous day's trading of $27.46. CSAL closed trading yesterday at $28.16 and crashed down after market to $26.64, equivalent to a 5% decrease from the closing price.
Taking a look at the daily chart, we can see the last time CSAL traded below these levels was on June 15th when it traded at $26.34 . Taking a closer look at the daily chart we can see that CSAL has been on a upward trend dating back to February 12th, when it traded at its 52-week low price of $15.13.
CSAL has a float of 136.46 million shares and traded 3.39 times the normal daily trading volume on Monday.
For trading purposes, I would like to see CSAL open trading on Tuesday below $27.00, and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position, fearing anything more than that and the stock would start to fill in the gap down.
h3 Company Profile/h3Communications Sales & Leasing, Inc. (CSAL), incorporated on October 04, 2014, is an internally managed real estate investment trust (REIT) engaged in the acquisition and construction of a range of infrastructure in the communications industry. The Company is focused on acquiring and constructing fiber optic broadband networks, wireless communications towers, copper and coaxial broadband networks and data centers. The Company operates through two segments: Leasing and Consumer competitive local exchange carrier (CLEC). The Company’s Leasing segment represents its REIT operations. The Consumer CLEC segment represents the operations of its Consumer CLEC Business. The Company owns approximately 3.6 million fiber strand miles, over 230,800 route miles of copper, and other property across 30 states.
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The Company and Windstream Holdings, Inc. (Windstream Holdings) entered into a long-term exclusive triple-net-lease agreement (the Master Lease), under which Windstream Holdings leases the Distribution Systems, which include certain telecommunications network assets, including fiber and copper networks and other real estate. . The Company conducts the Consumer CLEC Business through its subsidiary, Talk America Services, LLC. Talk America, LLC provides local telephone, high-speed Internet and long distance service to approximately 46,000 customers principally located in over 20 states across the eastern and central United States.
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