September 18, 2010 - American Tower Corp. (AMT-NYSE) through its subsidiaries, operates as a wireless and broadcast communications infrastructure company. It develops, owns, and operates communications sites. The company operates in two segments, Rental and Management, and Network Development Services.

The Network Development Services segment provides tower-related services, such as site acquisition, zoning and permitting services, and structural analysis services. As of March 1, 2010, the company owned and operated approximately 27,000 communications sites in the United States, Mexico, Brazil, and India. American Tower Corporation was founded in 1995 and is headquartered in Boston, Massachusetts.

American Tower is the largest independent operator of wireless communications and broadcast towers. Some of its customers are AT&T (about 19% of sales), Verizon Wireless (15%), and T-Mobile (9%). And it's in an expansionary mood.

Recently it acquired Essar Telecom Infrastructure, an Indian tower operator with 4600 sites for $430 million in cash. Analysts see the new purchase adding $30 million in sales this year, then $120 million next year. Management continues to shop. By the end of the year, it hopes to reach final agreement with Telefonica for 287 cellsites in Chile and 468 cellsites in Peru. Further acquisitions in Latin America are a priority. AMT has substantial assets in Mexico and Brazil already.

Earnings have increased every year since 2006 when they were 9 cents a share. It was the first year the company reported positive numbers. The following years were 29 cents, 58 cents and 62 cents. This year, 20 analysts see 88 cents ( with a range of 80 cents to 95 cents), then $1.10 next year (with a range of 96 cents to $1.31). Third quarter results will be out in October. Expect 19 cents a share, up from 17 cents last year in the third. In the fourth estimates are for 21 cents a share, above the 16 cents of last year's fourth. In the last 2 quarters, earnings beat estimates handily by margins of 33.30% and 25% respectively.

More numbers: Market Cap is $19.40 billion. Trailing P/E is 80. Forward P/E is 42. Price to sales ratio is 10.79. Price to book is 5.73. Operating margin for the last 12 months was 40.16%. Profit margin was 18.04%. Return on equity was 10.06%. Return on assets 5.34%. Total cash is $330.78 million for 83 cents a share. Total debt is $4.16 billion. Debt to equity is 1.22. Current ratio is 2.15. Book value per share is $8.53.

52-week high was set on September 9 at $49.95; the low on October 2, 2009 at $35.03. There are 401.14 million shares outstanding with a Float of 400.92 million. Insiders own 1% of the stock. Institutions own 97.90% of the Float.

American Tower is a great company. Investors love it. Back in 2002, they weren't so sure. You could have bought all you wanted for 60 cents a share. Now it costs a little more. Of course, in 2000 through 2005, the company lost money. In 2002, the loss was $1.61 per share. Things have changed. Earnings are solid and growing with expansion plans full steam ahead. It costs more to ride this stock. Investors have bid up the price to levels where valuations are rich. But if earnings keep beating estimates, there's no reason this stock can't go higher. If they miss, however, valuations are so full that a quick and painful correction would take some of the love out of the stock.

- Company Web site: www.americantower.com