The Last Mile seems to be to the upside with Zayo

• Posted by Greg Harmon
• on August 18th, 2015

In the wireless and cable industry the last mile has become synonymous with delivering service to the end user, the retail customer. But with the growth of the internet and companies delivering internet, wireless and cable services, there is new demand for improvement and innovation on the first mile.

This is where Zayo Group ($ZAYO) comes in. Based in Boulder, Colorado, they provide bandwidth solutions including connecting fiber to tower and small cell infrastructure. The company went public in late 2014 and the stock soared higher into year end. But after a short pullback, it settled into an expanding wedge, kind of like a reverse triangle. That was until late last week.

That is when it broke above the wedge, making its first new high in 5 and a half months. This gives a target of 34 on the pattern break. It has strong momentum behind it as well with the RSI just over 70 and the MACD rising. There is some fuel for a move as well with over 10% short interest.

This is a $7 billion company with only 16 analysts following it, and of the 9 reports filed over the last year 8 were upgrades with all but one of those to a rating suggesting buy more. One stocktwits the stock is only followed by 28 people.

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