AT&T Inc. (T:NYSE) may very well be one of the best stocks to buy on the current market. It has the lowest P/E compared to its largest competitors (20.27), and a killer deal with Apple Inc. (AAPL:NASDAQ) and its iPhone to boot!

While T is busy adding $2 billion in revenue every year until 2010 from its acquisition of Bell South and cellular provider Cingular Wireless, it’s also investing in the next generation of cellular service called femtocell.

Essentially, femtocell technology works as an in-home, or in-area, wireless access point, which resembles the regular modem or router that you already have for your computer.

The difference between this technology and Wi-Fi or VOIP phone service is that femtocell uses high-speed Internet connections instead of wireless networks to connect the call from the handset to the “switching station” -- effectively directing the call signal to its final destination.

This new technology will create in-area service, which could open up cellular service in entire cities on the cheap… and even in subway stations, like the London Underground. It can even be used in offices and homes.

Femtocell technology should be tested fully by the end of 2008. To make sure other cellular companies don’t stomp on the telecom giant, it’s already submitting proposals to suppliers that would be interested in a partnership involving this new technology.

While T is a great large-cap investment for the next few years, I’m deep in the trenches finding the best micro-cap and small-cap companies that could make double, triple, even move ten times what T moves in the next two years.

I’ll make the recommendation available to Diligent Investor MicroCap Hot Sheet subscribers soon, so don’t miss out on early-bird access to this new mobile technology.

Ann Sosnowski,
Senior Analyst, Diligent Investor MicroCap Hot Sheet

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