MetroPCS has reached decade low prices.  It already reached the March 2009 lows being at $5 currently.  If you take a look at its earnings, they have continued to bring in profit quarter after quarter.  The Super Bowl ad shows it’s pricing power – for $40 you get unlimited phone minutes, text, and web access.  AT&T is the only closest competitor at $70.  We’re at a recession right now and it’s surprising to see their stock price keep dropping even though they keep bringing in more subscribers.

Investors are selling because they believe Verizon and AT&T have the edge with the biggest network.  However, I seriously doubt they would drop their prices to MetroPCS’s prices.  Their profit margin would be seriously cut if they did.  MetroPCS has a big niche.  It markets to urban cities and it markets a very competitive price and it remains profitable.  I think the current price of $5.88 is a bargain.  There’s a lot more reward vs risk in this stock.