"I've been taking a close look at AMT's business and I like what I see. The company's revenue has been growing nicely with pro forma revenue growth of over $100 million per year since AMT acquired SpectraSite, another tower company, in August 2005.

"On a per tower basis, American Tower also delivers the highest revenue, the highest EBITDA, and highest free cash flow per tower among all the publicly-traded tower companies. For 2007, AMT is expected to pull in $1.64 per share in free cash flow.

"American Tower looks well-positioned for the future. The U.S. accounts for about 87% of AMT's revenue and the company has some 20,000 towers out of a total of 90,000 towers across the U.S. Nationwide, that number will grow as more wireless networks build out third generation and even fourth generation wireless networks.

"AMT's growth also depends on the health of the carrier market. I am happy to report that the carrier market is booming. The wireless service providers are all currently upgrading their networks and demand for their services is rising, driven by voice, data and new technologies such as WiMax as well as the deployment of third-generation (3G) networks.

"While I'm encouraged by the growth within the U.S., I also like to see companies with exposure to foreign markets- and AMT is focused on expanding its business in emerging markets. The company has already had success in Mexico and Brazil, which together account for about 13% of revenue-and Taiclet says that he expects the performance in those markets to improve this year.

"It's also looking into other countries in Latin America that are in an earlier stage of wireless development than the U.S., so the upside potential could be greater. Another potential growth market: India. Here, the wireless sector has been growing rapidly but it still has a long way to go.

"In fact, the Indian government has said that it intends to put up 300,000 towers over the next few years-a huge opportunity for AMT when you consider that AMT's successful business in Mexico in Brazil is based on only some 3,000 towers. In September, 2007 American Tower opened an office in Delhi, India and announced plans to pursue wireless communications site leasing opportunities in India and Southeast Asia.

"Looking forward, AMT should generate free cash flow of $1.87 this year and should be able to increase cash flow by about 18% to 20% a year for the next few years. At that rate, AMT's cash flow will be $2.26 per share in 2009. Given the current cash flow yield of 4.3%, I expect AMT shares to reach $53 in one year-a gain of 42% from current levels."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.