Leap Wireless International, Inc. (LEAP) Stock Review
Offering digital wireless services under the 'Cricket' brand in the U.S., LEAP shares have seen their price rise 154.07% over the 52-week review period. But that's not the only reason this wireless communications carrier made the cut to our List of 2014 Stock Superstars.
Strategic new pricing plans, innovative broadband service offerings and the increasing popularity of Muve music devices has delivered exceptional increase in Leap's Average Revenue Per User (ARPU). The company's position as the first carrier to offer iPhone prepaid services has also placed it in a strategically sound footing for 2014 and beyond.
The company's share prices also got a boost, thanks to AT&T's liberal $15/share takeout offer, as well as to the longer-term accretive value that investors see in two deals that Leap sealed – its Mobile Virtual Network Operator (MVNO) deal with Sprint, and the Clearwater deal that will see the company expand its capacity and coverage while reducing the need for extensive cap ex.
Investors looking to leap into action on this stock in 2014 might want to take a bit of a "look and see" approach. With no need for customers to sign a service contract for its services, Leap faces the unenviable prospect of trying to slash costs while at the same time fighting to protect its customer base. This is an especially difficult balancing act, given the fact that more efficient competitors like MetroPCS are poised to give the company a run for margins.