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Clearwire Corporation (CLWRD) Message Board

  • mundeleinmike2 mundeleinmike2 Jan 25, 2011 12:34 PM Flag

    Valuation...

    I am just thinking out loud here....this company has a market cap of around $1.3B at this level, and I am not sure if this information at Yahoo Finance is current, but they have $1.3B in cash and $2.8B in debt right now, putting them $1.5B in the hole cash-wise. So the market cap plus the debt/cash balance makes the cost of this company $2.8B if bought out at this price with no premium, right? If the operations where just completely shut down, isn't the value of their spectrum assets far higher than that amount? Aren't there other companies out there who need that spectrum? Why hasn't Gordon Gekko just bought this piece of crap and shut it down to sell off the assets? What am I missing?

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    • I think you are right AT&T & Verizon rarely develop new technologies, they buy it or put their competition out of business.

    • Seems to be a game chicken now between Sprint, T-Mobile and possibly a unknown third party. Sprint has pumped serious money into Clearwire and I don't believe for a second Sprint want to loose or share Clwr with another telecom. T-Mobile is running out of time if it wants to compete with VZ and T in the 4G broadband arena. The clock is ticking and if T-Mobile thinks it can wait two, three years to get wireless 4G broadband up and running, they are badly mistaken. So Sprint and T-Mobile say one thing, but behind closed doors they really want something else. Clearwire's spectrum on the cheap. Unfortunately for both Sprint and T-Mobile that is not going to happen. Clearwire spectrum is owned by Clearwire 100% and its not for sale (at least for now).

    • ... about $26.50 net of debt and taking into account economic share classes and minority stakes. VLIS also publishes book value as such and currently lists CLWR in the #1 position among it's 1700 tracked corporations in terms of selling at a discount to book value (about 20% of book value currently).

      CLWR's book value/share computation includes the current book value of it's spectrum holdings which are about $4.2 billion. Judging from recent estimates by analysts pursuant to CLWR's current interest in auctioning some of their spectrum holdings, I have estimated (MHO) them to be worth somewhere between $8 billion and $17 billion. For that reason, I view CLWR's current "liquidating" value per share to be greater than it's book value per share.

      When looking at the company's capitalization, I feel that the stock's depressed value primarily reflects investor's perception of the company's value as a going concern whereas the company's bond prices, which have been selling at a substantial premium, does a better job of reflecting the company's liquidating value.

      Hope this helps,

      Spok

      • 2 Replies to bjspokanimal
      • spok.....stanton shoud buy you lunch......right on target with this....

        CLWR's book value/share computation includes the current book value of it's spectrum holdings which are about $4.2 billion. Judging from recent estimates by analysts pursuant to CLWR's current interest in auctioning some of their spectrum holdings, I have estimated (MHO) them to be worth somewhere between $8 billion and $17 billion. For that reason, I view CLWR's current "liquidating" value per share to be greater than it's book value per share.

        When looking at the company's capitalization, I feel that the stock's depressed value primarily reflects investor's perception of the company's value as a going concern whereas the company's bond prices, which have been selling at a substantial premium, does a better job of reflecting the company's liquidating value.

      • nice post

 

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