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Yo rats...

Quick post before my day gets gone...I have done a couple of "heads up" posts on Spectrasite (SITE), a Cary, North Carolina based company (OK..it's really part of the RTP)...my last post was on 7/30/2000, and this morning, SITE announced a huge deal worth $1.3 million of leasing SBC's towers (the deal includes SBC getting some $325 million in SITE stock).

Here is the link:

http://quote.fool.com/News/symbolnews.asp?symbols=SITE&currticker=SITE&mode=single&sid=255499&action=gs&dtfrom=7%2F28%2F2000+8%3A10%3A06+AM

For more about this company...here are the links to my previous posts:

Towering Cash (7/30)

http://boards.fool.com/Message.asp?id=1380066003721000

Not Sexy but worth a Look (6/30)

http://boards.fool.com/Message.asp?id=1380066003410000


OK....so what's the big deal?....well, the CEO of SITE was on CNBC this morning...they now control towers in the 50 largest urban markets...they average 1.5 tenants per tower...as new uses (and tenants) have needs, these towers will be a prized commodity for the Next Generation of wireless uses..Palm, PDAs....and later on 3G. Since the fixed cost of the build out is largely behind them...the multiple tenants become a cash cow....I believe he said that the margins go up to 70% after the 5th tenant on the cellular towers.

So...you heard it on the RatVine...I am still interested in this company..I think it is executing well, and it has most of its ramp up in capital outlays behind them (approximately $2 billion, but who's counting)... wireless goes nowhere without the tower infrastructure. Oh yes...market noticed this...SITE was up 3 this morning in extended trading..it has traded at a high of 30, but closed Friday at 21 and change.

Fool On.

OtterPater
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