Leap Wireless International, SanDisk, Google, Metro PCS Communications and America Movil SAB

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Leap Wireless International Inc.(Nasdaq: [ LEAP ]), SanDisk Corp.(Nasdaq: [ SNDK ]), Google Inc. (Nasdaq: [ GOOG ]), Metro PCS Communications Inc.(NYSE: [ PCS ]) and America Movil SAB(NYSE: [ AMX ]).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]

Here are highlights from Tuesdaya�s Analyst Blog:

Leap Offers Unlimited Music Downloads

Leap Wireless International Inc.(Nasdaq: [ LEAP ]), a small-sized prepaid wireless services provider in the U.S. operating under the brand name aCricket,a has decided to offer unlimited music download facilities to its 3G subscribers. The new digital music service will be called aMuve Music.a Leap is the first wireless service provider in the U.S. to launch this innovative service.

For just a $55 service plan, Cricket customers will get a combined package of voice, data, and text together with unlimited music download on the nationwide 3G network of Leap. Muve Music will be introduced in January 2011. Initially, this facility will be available on Samsung Suede (SCH-r710) mobile handsets, which currently costs $199.

This smartphone will have a 4GB flash memory card ofSanDisk Corp.(Nasdaq: [ SNDK ]) to download music without digital rights management protection. Leap announced that later on, Muve Music will be available on all smartphones running onGoogle Inc.a�s (Nasdaq: [ GOOG ]) Android operating system.

We believe this product innovation is a desperate attempt by management to revive the companya�s financial position. As the prepaid wireless market is getting more competitive, Leap is suffering since its larger peers such asMetro PCS Communications Inc.(NYSE: [ PCS ]) and Tracfone, a subsidiary ofAmerica Movil SAB(NYSE: [ AMX ]), continue to attract subscribers with their competitive service plans, greater network coverage and better product offerings.

Currently, Leap has around 5.1 million wireless subscribers. During the third quarter of 2010, the company suffered 200,000 net subscriber losses. Out of this, 172,000 were voice customers and 28,000 were broadband customers. Quarterly churn rate was 5.5% compared to 5.4% in the year-ago quarter. Voice churn rate was 5.2% compared to 5.4% in the prior-year quarter. Broadband churn rate was 7.6% compared to 5.6% in the year-ago quarter. Average revenue per user, in the same quarter was $37.02, down 6.5% year over year.

Nevertheless, Leap remains as one of the low-cost wireless service providers in the U.S., which enables it to roll out a range of cheap service plans that start as low as $35 per month. The company has strategic plans to expand coverage in urban and suburban markets and avoid less populated areas to keep its infrastructural cost low.

After establishing its network in a new market, the company will promote its services mostly through less expensive media. We maintain our long-term Neutral recommendation for Leap. Currently it is a short-term Zacks #3 Rank (Hold) stock.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].

Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.

Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

N@N

Leap Wireless International, SanDisk, Google, Metro PCS Communications and America Movil SAB