The other factor here is its steady side, with Broadcom Corporation (NASDAQ:BRCM) being the leading manufacturer of chips that run satellite TV boxes. Americans have shown no slowdown in their TV-watching habits, and this acts as a steady and predictable source of revenue for Broadcom Corporation (NASDAQ:BRCM).
With close to $780 million in net cash, a yield of 1.6%, and a forward P/E that’s shrunk to less than 10, I can’t help thinking it’s an intriguing bargain at its current price.
Towering heights
It’s sometimes amazing how quickly a company can go from hitting a new all-time high to tracking along just a few percentage points above a 52-week low. For cellular tower operator American Tower Corp (NYSE:AMT) , it predominantly has to do with a scathing report from noted short-selling firm Muddy Waters, which accuses American Tower Corp (NYSE:AMT) of misrepresenting its actual purchase price of some 666 wireless towers in Brazil, and questions recent insider sales by directors of the company.
Personally, this seems like a significant amount of hypersensitive trading, given that American Tower Corp (NYSE:AMT) fired back at Muddy Waters defending its accounting, and also given that, among its peers, American Tower Corp (NYSE:AMT) is the most financially sound, and the only tower company capable of turning a regular profit.
Because investing in cell towers requires so much capital, American Tower chose to become a REIT in early 2012 to take advantage of the many tax advantages afforded to REITs. In return, shareholders receive 90% of more of the company’s profits in the form of a dividend — a win-win for both parties involved.
But what doesn’t make an iota of sense to me since American Tower Corp (NYSE:AMT) is statistically the only profitable wireless tower provider is why anyone would consider betting against it as the U.S. wireless communications industry is currently undergoing a period of intense consolidation and 4G LTE infrastructure build-outs. The demand for antenna space is soon going to spike, and American Tower is set to reap the rewards of that expansion. I’d strongly suggest giving American Tower Corp (NYSE:AMT) another look.
Foolish roundup
This week’s theme is all about finding niche-dominant companies that are recently down on their luck. Gogo Inc (NASDAQ:GOGO) and its in-flight Internet dominance, Broadcom with its 3G connectivity market share, and American Tower with its lion’s share of wireless antenna towers, make all three an intriguing buy candidate moving forward.
I’m so confident that these three names will bounce off their lows that I’m going to make a CAPScall of outperform on each one.
The article 3 Stocks Near 52-Week Lows Worth Buying originally appeared on Fool.com is written by Sean Williams.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article.
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