4. American Tower owns and operates more than 22,000 cellular towers in the U.S., Mexico and Brazil. It also runs in-building antenna systems for malls, hotels and other venues. The company's first-quarter profit stretched 64% to $96 million, or 24 cents, as revenue grew 11%. American Tower's stock sells for a price-to-sales ratio of 10 and a price-to-cash-flow ratio of 20, 304% and 206% premiums to wireless telecom industry averages.
3. Toll Brothers designs, builds and markets single-family detached homes in luxury residential communities. The company has suffered net losses for 10 consecutive quarters. Its fiscal second-quarter loss narrowed 51% to $40 million, or 24 cents, but revenue dropped 22%. Toll Brothers' stock trades at a price-to-projected-earnings ratio of 87 and a price-to-cash-flow ratio of 97, 140% and 845% premiums to household durable industry averages.
2. Crown Castle International owns, operates and leases cell towers. Since 2007, it has expanded net sales 23% annually, on average. In the latest quarter, its revenue rose 10%, but it swung to a net loss of $119 million, or 43 cents, from a profit of $11 million, or 2 cents, a year earlier. The shares sell for a price-to-projected-earnings ratio of 93, a 637% premium to the wireless telecom peer average. They're also costly based on trailing earnings.
1. Dendreon is a biotechnology company. Its principle drug, Provenge, received Food and Drug Administration approval on April 29. Its stock has fallen 42% from its 52-week high on May 3. Dendreon trades at a price-to-projected-earnings ratio of 672, whereas its average peer trades at a multiple of 18. Although Dendreon remains a top pharma play, its stock is priced for unrealistic near-term growth.
Author's note: This Dendreon item was written prior to news that the Centers for Medicare and Medicaid Services said that they had begun an evaluation process to determine national coverage of Provenge. Dendreon shares fell as much as 23% to $25 in after-hours trading on Wednesday; they rebounded to as high as $30.53 as of publication Thursday.
Disclosure information was not available for Lynch or his company.