I'm surprised there isn't more chatter about this letter from this investment firm. The implications that clwr's management and sprint are complicit in trashing the value of our stock could more accurately be called an accusation followed by the threat of legal action. If my Math is correct, and this would be a rough estimate, they value clwr's spectrum (not counting assets) at between $9 and $11 per share. They say selling some the excess spectrum on the open market would finally establish the value of the spectrum. Doing so would provide the company enough money to pay its debt and continue the td-lte buildout. Clwr would profitable.
The firm clearly sees sprint attempting to manipulate matters to the detriment of the shareholders. This news release is huge.... If there is a concerted effort to suppress the stock value as Mount Kellett is saying, there's going to be hell to pay.
"Mount Kellett suspects that Sprint is going to wait for the year — and Clearwire’s cash — to run out, which will put the company in distress, before it swoops in with a buyout proposal that would value the company below what it’s really worth."
This is exactly why I took my profits and ran. I was on the losing end of a similar ploy when Schlumberger did the same to CellNet Data. CellNet burned out all its cash in system deployment, and Schlumberger swooped in paying pennies on the dollar for the network built on losing investors backs.
Not making any recommendations here; just saying what I did.
Most investors see Mt Kellett as a desperate firm trying to fraudulently manipulate the share price. They're simply lying about the spectrum valuation by using 700 MHz comps (NextWave) to value Clearwire spectrum, and their 13D filing itself is iffy (7.5% of A shares --- but they were at 6.5% as of June 30th --- why didn't they file then, as required by the SEC?).
Don't you mean, most SHORTS see Mt Kellett as desperate? They are LYING about the value of the spectrum. Are you desperate and manipulative or is it possible you really don't know the difference between speculation and a lie?
Nextwave sold all their 700MHz first then they sold the rest of their spectrum in 2008.
"NextWave said today it has hired a pair of financial consultants, Deutsche Bank and UBS Investment Bank, to find a buyer for its 223 licenses divided among four different spectral bands. NextWave currently owns the 150 Advanced Wireless Services (WCS) licenses at 1.7 GHz and 2.1 GHz, covering 62 million people; owns 30 Wireless Communications Services (WCS) in the 2.3 GHz band, covering 209.8 million people; and either owns or leases 39 Educational Broadband Services (EBS) and Broadband Radio Services (BRS) licenses in the 2.3 GHz and 2.5 GHz bands, covering New York City."
This is the sale Mount Kellett is talking about, not the 700Mhz sale. The comparable sale above, which went to ATT, it was a distressed sale and sold for $.38 per Mhz Pop. That was FOUR years ago. Spectrum values have gone up at least 5% per year since then. CLWR spectrum is worth $.46 per Mhz PoP now in a distressed sale. In a non distressed sale, it's worth even more.
Sentiment: Strong Buy
Unfortunately MK block is in the minority. Sprint is the major shareholder. Nothing is going to happen because of this letter. MK just brought out what many of us commoners have been thinking all along.
Sentiment: Strong Sell
There is always that danger if Sprint, Leap, and smaller outfits are the ones allow to bid on CLWR spectrum in an auction (note: FCC denying T and VZ to participate because of anti-monopoly and cap rules) Sprint will steal CLWR spectrum like in a 15-cent/MHz/POP which will make the $2/share buyout a luxury. Given this possibility and Sprint’s ability to control CLWR cash flow I think the larger investors are beginning to panic.
Think about it why has it taken this long for this investor to come forward?
All I have been hearing over the last few yrs has been sell spectrum way before this sprint deal and when Clear rummors was all about BK. clear had other large investors invested in them at that time that got out with in the last yr and if Mount Kellett was so worried why didn't they look for backers then ?
I wonder what may be in it for them now to get clearwire to sell spectrum. I mean with them being a investment firm what other cookie jars may they have thier hands in?.
As a investor in both Sprint and Clearwire this Bird has my mind working full time.
Sentiment: Strong Buy