cell phone stocks

Merger Rumors Driving These Tech Stocks Higher

According to Statista.com, it’s estimated that there will be more than 196 million smartphone users in the United Stated by the year 2016. The Wireless Communications industry benefited from the rapid development of mobile devices. In addition to, infrastructure investments and advancements in technology have also reported strong revenue growth in 2015 thus far.

The industry displays a high level of concentration. In 2015, the 4 major whales in this industry AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Sprint Corporation (NYSE:S), and T-Mobile US, Inc. (NYSE:TMUS) are projected to account for an estimate of 98.9% of industry revenue. The industry in 2015 is projected to report revenues of $242bn according to ibisworld.com. Merger rumors between T-Mobile and Dish Networks have been a driving force of its 3.9% price spike over the last 5 days. Frontrunner of the industry AT&T has seen a 2.2% PPS increase over the last five days seeing a high of $35.48. Both Verizon and Sprint are taking a hit this week. Verizon has seen a price fall of 2.8%, while Sprint dropped 3.0%.

Another high quality, low cost mobile communications company that has made headway in 2015 is iTalk Inc. (OTCMKTS:TALK). iTalk has the ability to offer nationwide voice and data coverage to 280 million people in 12,900 cities. TALK has made an impressive price spike of 100% in the last 5 days. If TALK was able to generate 0.003% of the industry’s revenue, the company would be generating $7.26m in revenue.

 

As stated previously the four major companies; AT&T, T-Mobile, Verizon, and Sprint dominate 98% of the industry’s revenue, which leaves a small amount for the rest of the industry. From a small cap perspective, TALK has created a financially self-sustainable company through organic growth and strategic acquisitions thus positioning itself to capture a piece of the industry’s remaining $4.84Billion dollars that are up for grabs.

 

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