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Clearwire Corporation (CLWRD) Message Board

  • bjspokanimal bjspokanimal Nov 15, 2010 7:30 PM Flag

    Drilling Into the Balance Sheet

    Looking at CLWR's balance sheet, $10.5 billion of assets are offset by $3.9 billion of liabilites leaving owners equity of about $6.6 billion.

    Divide that by CLWR's 242.3 million shares leaves a book value of $27.24 a share, which leaves CLWR currently selling at about 23.5% of book value...

    ... that's the lowest such ratio in Value Line's universe of 1700 stocks.

    But... what is the true value of CLWR's book value? It's true that book value represents the "depreciated" value of it's hard assets, for one, but most of the recent banter revolves around the value of CLWR's spectrum, since they may auction some of it off to raise cash.

    CLWR has between 120 and 150 mhz of spectrum across the nation to my knowledge (anyone who would like to "fine tune" my knowledge in this regard is welcome to comment) which contrasts with the #2 holder of wireless spectrum amongst it's comptitors, Verizon, with approx. 88 mhz average coverage.

    CLWR carries to total value of it's spectrum holdings on it's books at $4.44 billion.

    Regarding the recent announcements that CLWR could sell some of it's spectrum holdings, here was one quote from a bloomberg piece:

    "The company is selling up to 40 megahertz of spectrum per market, a slice of its wireless capacity, one person said. A value of 20 cents to 40 cents per megahertz of spectrum per U.S. resident would reach the $2.5 billion to $5 billion price tag, Jennifer Fritzsche, an analyst at Wells Fargo Securities LLC in Chicago, said in a research note today"

    This would seemingly value clearwire's spectrum holdings between roughly $8.5 billion and $17 billion in the marketplace, and conceptually has CLWR's book value per share far below it's liquidating value based on spectrum alone.

    That's it for the drilling... comments from pumpers and bashers are welcome!

    Spok

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    • Thanks Froggy. I am sure it took a little work to find. Hopefully people use the above to realize they need to do their own research. Message boards can be valuable, but only to stimulate your own thinking.

      Being wrong is only a problem if you refuse to learn from it. If you don't admit it, you can't learn.

    • It's now up to CLWR to start it up and push the gas pedal down.

    • ... pretty darned complete 1-year summary (although you can pretty much toss India's move toward standardizing with TD-LTE at 2.5ghz in there along with China as well):

      http://www.dailywireless.org/2011/10/20/td-lte-its-alive/

      I think the biggest lesson here is that this industry is changing and developing very rapidly... which is something I think Dan Hesse forgot about as he stalled these companies out over the past 8 months.

      With AT&T now stalled with their merger, perhaps Hesse's awakening to an action-oriented strategy with Clearwire will overcome a few years of negative I-phone ROI and actually allow sprint to survive.

      S

    • They have many options.. and managers before them.. that doesn't mean they tiptoe through a garden of tulips.

    • I have to admit that despite being old-school and losing many people a lot of money, not revolutionizing he adoption model to flesh out the capabilities of the technology, Clearwire is now pursuing the steps toward being important to 4G markets.

    • Good post. John and Eric have many options...

    • and compare and contrast that with new dynamic...

      Hesse out foxed on T-Mob M&A by T.

      CLWR's BoD loses several S controlled members. Sprint voting rights cut to 49%.

      Network Vision Plan delayed.

      CLWR improves operational efficiency. Signs deal with Ericsson.

      CLWR sucessfully tests TD-LTE.

      CLWR in talks with China Mobile.

      Hesse's maniacal focus on derailing that deal rather than focusing on moving Sprint and CLWR forward positioning the companies to compete.

      Stanton clarifies CLWR's wholesale business plan and improves internal management with personnel and position changes. Buys $5 million worth of CLWR stock.

      Sprint uses LS2 used to get concessions from CLWR.

      T and VZ say they are going FD-LTE.

      CLWR adds almost 2 million subscribers and can be EBITDA positive early next year.

      Hesse implodes at investors CC trying to explain his Network Vision and says he doesn't care if CLWR goes BK... a company they own 54% of.

      Befuddled investors sell 550 million shares of S causing a significant loss of market cap. CLWR drops to $1.24.

      Hesse gets iPhone 4S and can't explain pros and cons of $20 billion deal.

      Hesse declares WiMax dead and implies no support after 2012. Decides to spend $10 billion on an FD-LTE network rather than $600 million TD-LTE network.

      LS2 network tests interfere with GPS and requires further testing while Falcone implodes.

      Dish says it's interested in partnering with CLWR. CLWR says its in talks with many companies.

      China going TD-LTE.

      Sequans developing multi-mode chip to support world phone protocol... and China's market.

      iPhone 5 TD-LTE for 4G... to support China's market and world phone.

      CLWR says it needs $600 million for TD-LTE multi-mode network.

      VZ buys spectrum.

      CLWR threatens S with BK.

      CLWR and S sign MOA.

      CLWR and S sign a multi year deal.

      CLWR sells additional shares and gets the money for TD-LTE. BK fears removed for foreseeable future.

      TD-LTE and CLWR's fat pipe spectrum... game changers.

      ///////// Just a bit a hard to predict all that /////////

    • so when does this 2.00 offering come to a head so we can move forward ? Wasn't today the final day ?

    • Very good read...thanks for the find!

      Regards

    • How long did it take you to find it?

      Yeah, a 2-bagger from that day would have been sweet... especially since I was picking up my first traunche at $6 and change last fall.

      Still, it wasn't all that many weeks ago that Clearwire was at $3 and that was when the future looked a whole lot more dire than it does now.

      Man, that's OLD, bud!

      S

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