The Last of the Multi-Bagger Cash Cow Utility Stocks…

“Can you hear me now?” is a famous line from North American Verizon commercials.

Today, throughout the U.S. and Canada, it’s a rarity when our cell phones don’t have a decent connection… But for the rest of the world, not so much.

Only 25% of the world has access to wireless communications.

South America alone needs 350,000 towers by the end of 2019! As of this moment, they have less than 170,000.

This is where investors can make serious profits over the next decade or two.

Imagine investing into telephone poles in the mid-1800s or the first wave of wireless towers in the U.S. in the 1970s.

It’s a niche market that has rewarded investors with fortunes.

American Tower Corp. (NYSE: AMT) ran from $1.50 to its current price of $145!

SBA Communications (NASDAQ: SBAC) rose from 40 cents to $170! That’s a gain of 57,900%!

Every $3,000 invested could have become $1.7 million.

Crown Castle International Corp. (NYSE: CCI) started at $10 a decade ago. Today, it’s trading for $110!
These companies are cash cows, too, and they are utility stocks that are historically known for their boring safety, but as you can see, the gains being made from helping with the urbanization of our planet have been helping investors score big.

The fertile ground right now is in the emerging markets, which is where our new utility stock suggestion is beginning to build their empire.

***WARNING*** FULL Disclosure: This is a low market cap stock (USD$15 million), so expect volatility as they build the business to what we believe could ultimately become a billion-dollar giant.

This is a Canadian-listed company (CSE: TO), however, we can buy shares in the U.S. on the OTC markets.

TOWTF owns and operates quality wireless infrastructure sites.

This is a tiny company in the right market, with a clear path for enormous upside.

TOWTF currently has a portfolio of 40 towers, with 15 additional ones under construction and 350 at the site acquisition and permitting stage.

Operating in Argentina, Columbia, and Mexico, TOWTF is free to increase their market share without interruption, in our opinion.

Here’s the nuts and bolts for TOWTF: each tower costs between $50k and $100k to build. Generating $12k to $15k per year from each operator, each tower can easily have 3 or 4 operators.

However, if each tower only had two operators, that puts them in a break-even position within two years, and then it’s all profits from there.

These towers go up fast, too, only taking about a month to build!

When I spoke to their seasoned management team, they said they planned to build at least 300 towers over the next 18 months, creating an income stream to help further advance the company without debt or equity raises.

I’ve personally never seen a management team with so much skin in the game.

Management has 31 million shares (41% of the company), and they’ve locked their shares up for the next two years!

It’s quite impressive and almost unheard of to see a management team that owns nearly half of the company and who voluntarily locked up their shares for years as they build up the cash flow infrastructure of this company.

The math is simple for the management team: build 300 towers with almost no dilution since all they need is about $5 million to $10 million to achieve this, and they’ll have a potential value of over $200 million.

With cash flow and a sizable infrastructure, at that point, in our opinion, they’ll be taken out by a major telecommunications company.

Tower Development’s 365 towers were purchased for $461 million by Crown Castle in 2016, and if we had to bet, we’d say that’s why management was happy to lock up their shares.

The big win for everyone involved isn’t trading this stock, but partnering with management as investors and allowing them to build it up to 300 towers.

What’s incredible about this investment idea is that it doesn’t take much for this tiny little stock to be a cash cow giant.

Happy Investing!