Clearwire MUST offer the same wholesale pricing to T & VZ as is offered to Sprint.
T & VZ, like Sprint, would be able to offer unlimited LTE using the Clearwire network.
Each paying $1B per year raises CLWR revenue to $3B+. At $3B, CLWR is a $15 stock.
To prevent T & VZ from offering unlimited, S must by CLWR. An S buyout would likely be $5/sh plus a 1-for-1 share exchange S for CLWR. S would within 1 year got to $10 (with the only unlimited nationwide plan and the hand-sdown fastest 4G). Sprint will hit $20 in two years.
We're sitting on a gold mine!
Obviously, the synergy between S and clear will increase parabolically if S were to buyout / merge with clear. Sprint clear will then have the max. speed, spectrum depth, & a much greater non-overlapping geographical coverage. People will start ditching T, vz etc. and migrate to s-clear. All under one brand name - one lightspeed experience. Hesse needs to move asap before somebody like aapl, msft, dish or Tmob gobble up clear.
CLWR Hedges Playing with themselves
May 15, 2012
As One JPMorgan Trader Sold Risky Contracts, Another One Bought Them
For hedge funds that could smell blood in the water, it seemed to be an opportunity to take on JPMorgan Chase and win.
It was, in fact, such a sweet trade that even another part of the bank couldn’t pass it up.
Even as a trader for JPMorgan in London was selling piles of insurance on corporate debt, figuring that the economy was on the upswing, a mutual fund elsewhere at the bank was taking the other side of the bet.
We are being walked down. Time to change the reporting rules. Too much fraud!
I think only Sprint can feasilby buy out Clearwire because Sprint has a right under the equity shareholder's agreement to maintain their percentage share of outstanding stock.
The other alternative is for a company to buy BOTH Sprint and Clearwire.
Unlimited plans are not sustainable on anyone's wireless network, not even CLWR's. Dan Hesse commented a while back that a few wireless customers with Tivo can bring a cell site to its knees. And neither LTE nor LTE-A changes that.
The cable companies don't even offer "unlimited" consumer service anymore and they have 1,000MHz of bandwidth to the home.
Just like JP Morgan
One trader was selling and another JP was buying the bad debt to create a market.
Account A selling to Account B - same thing going on with CLWR.
Funds are buying and selling between their OWN accounts to walk the price down and hoping to pick-off weak hands.
If you know what you own, you'll ride-it-out.
Gold Mine !!
Your theory sounds legit, and probably when industry veteran stanton bought so much clwr stock, and probably the reason why they have the sprint buy out clause in the contract.
We need something soon indano, longs are getting crushed here.
I think just a rumor article of some sort would make the stock fly. We are so close to positive eps, just one big carrier would get the scale up to positive cash flow for years and years.