MetroPCS Communications: Good Call

If you want a fast-growing company and can handle the risk, call your broker now to get shares of this wireless carrier.

How would you like a cell phone plan that gives you unlimited local minutes for a flat $30 a month -- no charges for exceeding your monthly limit and no contract locking you in for years? How would you like one that gives you unlimited local calling, unlimited long distance plus unlimited text and picture messaging as well as Internet access for a flat $50 a month? If they sound like good deals, then you might want to consider stock in the company offering them: MetroPCS Communications, a Dallas-based wireless provider whose prospects are anything but flat.

The company, which only went public in April at $23 a share, garnered buy recommendations from several brokerage houses on May 29. Bear Sterns (which led the underwriting for the initial public offering), Bank of America, Thomas Weisel, UBS Securities and Wachovia all published bullish remarks, following a similar recommendation on May 23 from Robert W. Baird & Co. Surprisingly, the stock (symbol PCS) lost 3.2% on the day, closing at $33.90.

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Anne Kates Smith
Executive Editor, Kiplinger's Personal Finance

Anne Kates Smith brings Wall Street to Main Street, with decades of experience covering investments and personal finance for real people trying to navigate fast-changing markets, preserve financial security or plan for the future. She oversees the magazine's investing coverage,  authors Kiplinger’s biannual stock-market outlooks and writes the "Your Mind and Your Money" column, a take on behavioral finance and how investors can get out of their own way. Smith began her journalism career as a writer and columnist for USA Today. Prior to joining Kiplinger, she was a senior editor at U.S. News & World Report and a contributing columnist for TheStreet. Smith is a graduate of St. John's College in Annapolis, Md., the third-oldest college in America.