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Clearwire Corporation (CLWRD) Message Board

  • egomes egomes Nov 18, 2011 3:59 PM Flag

    Joan called it.

    Do you guys remember Joan’s last article. Which many of you called her a “bimbo”. Well Joan called it. Maybe you’ll find her article interesting enough to read again.

    “In this nasty family spat, what tools does Clearwire have available in trying to defend itself? At this moment, Clearwire has over $700 million in the bank so it has the cash to pay the interest due on these various securities December 1, 2011. But its shrewdest move may be to skip the interest payments and start the clock running on a 30 day default situation. No entity has more to lose than Sprint as the largest common shareholder and the tiniest bondholder. Sprint’s management didn’t seem to know that on October 7th but my guess is that Mr. Hance and even now the ever challenged Dan Hesse, and his CFO Joe Euteneuer know it, too.”

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    • Then lets see a thoughtful article on the value of the spectrum and the path to realization of that value.

      Instead, she merely repeats other analysts outdated and overly optimistic projections . She quotes an analysts price target of $20 for the stock as if that should be a reason to buy at $4, $3, $2.......$1. Instead of just saying, "Obviously, this analyst has no clue as to the value of CLWR, and as such, his analysis is worthless".

    • Excerpts from link dated Nov 18, 2011 4:45pm. If interested read full article.

      A Clearwire default or bankruptcy could do irreparable harm to Sprint’s future 4G strategy –- whether the operator admits it or not.
      --Clearwire has a 30-day grace period after the payment comes due so if Clearwire delayed sending a check, Pursch said the company could make good use of that time to seek more funding and to sign up new partners to resell its WiMAX service.
      --Clearwire is walking a tightrope, and if it falls, its weight will land squarely on Sprint. Not only would Sprint lose much of investment during a Clearwire bankruptcy, but it also risks parting with perhaps its most valuable asset: spectrum.
      --Clearwire holds over 100 MHz in every major U.S. market. To put that in perspective, that’s more than five times what AT&T and Verizon are using to launch their current ultra-fast LTE networks. With that kind of capacity, Sprint conceivably could continue to offer unlimited smartphone data plans well into the future, while its competitors struggle to limit their customer’s usage.
      --Sprint has taken several steps to create public distance between its 4G strategy and Clearwire.
      --Even when Sprint and Clearwire publicly made up later that month with Sprint agreeing to work with Clearwire on its TD-LTE deployment, that network still came in dead last in Sprint’s priority list. Sprint has been playing a dangerous game of hard-to-get with its 4G supplier, making every effort to communicate that it doesn’t need Clearwire to move forward.
      --If Sprint were to tap into a future Clearwire TD-LTE network, it would have capacity to burn. Clearwire can feasibly launch an LTE network with 40 MHz of bandwidth, double what AT&T and Verizon offer today — and Clearwire has plenty more room to grow.
      --But if Clearwire files for bankruptcy, Sprint could lose that treasure trove of spectrum. Sprint’s investment in Clearwire could be wiped out completely, or worse: the spectrum could be auctioned off to the highest bidder, placing it into the hands of a cash-rich competitor like Verizon or AT&T. From a spectrum position, Sprint today is the envy of the industry with access to the richest stores of frequencies of any operator. If it lets Clearwire default and descend into bankruptcy, Sprint would become the operator with the weakest

    • Good point, and something the other articles, including Joan, do not mention.

      I will fight to be LEAD PLAINTIFF.

    • One of the options CLWR still has is to sell assets, raise cash and build their LTE dream. And it is clearly more advantageous to sell assets when one has time to negotiate rather than to create an environment where one loses control of the process to a bankruptcy judge and their own self-created fire-sale.

      To hit the self-destruct button unnecessarily and prematurely when the company has multiple non-destructive options left will invite shareholder lawsuits against CLWR's BoD, and justifiably so.

    • I believe she believes the spectrum is the value - right or wrong. No doubt her firm is tainted by this stock if it goes down. Can't win them all, as we all know.

    • No, I'll keep it like it is.

      She failed to explain the risks inherent in the stock and that BR is a very real possibility.

      But then, thats not her job. Her job is to sell, sell, sell (her advice that is), and most people want the simple answer, not that the world is complicated and noone, not her, not Stanton, not even Warren Buffett can predict the future.

      If that is not bad enough, she then blames her failure on others. Simply amazing that she continues to make a living in the industry after all of the money she cost her investors.

    • Dude you nailed it perfectly. If you are long and have some significant skin in the game (with CLWR shares), get this information to Walt Piecyk at BTIG or some of the other S and CLWR analysts, because I don't think they understand the relationship as well as you articulated in your post.

      I have been crying for months how Hesse is hurting both S and CLWR because of his Clear-bashing, how he keeps his job after engineering the destruction of Sprint's $9 BILLION investment in CLWR shares, is beyond me.

      Your posts are right on the money. Why doesn't Sprint's mgmt understand that they are hurting themselves for not at least verbally supporting CLWR? I think any potential suitors are also deciding to "wait and see" how this S-CLWR soap opera plays out before pulling the trigger. CLWR may have sizeable value in spectrum, but from all accounts is always portrayed as "the money-losing wireless network", and appear to be a f*%&'d up company.....

      Keep up the good work L!

    • CLWR was going nowhere trying to secure other partners. No one wants to partner with CLWR until they stopped getting mixed signals from the CLWR /Sprint relationship. As I recall it started when CLWR started selling retail which made them a competitor with partner Sprint. That was a big mistake. But that’s here nor there. It hasn’t stopped. CLWR capitulated to Sprint several times since then. CLWR has had 3 (I think) CEO’s, Bill Morrow, John Stanton, and Eric P. . Sprint has had 1 Dan Hesse. They continue to come close to solving their problems but never do. CLWR had to force Sprint into negotiations or CLWR would have a slow agonizing death. I know I’m in the minority when I say Dan Hesse is the problem for both Sprint and CLWR right now. I don’t fully understand why, when someone has that opinion, that they get labeled “your blaming someone else for your own Clearwire mistakes”. My reason for saying that is, I honestly feel Hesse is not a good team leader, he’s not making rational decisions. Hesse will be shown the door if he doesn’t wake up and smell the clearwire rose bush (spectrum). imo

    • llong54 Nov 20, 2011 2:45 PM Flag

      In reflection Hesse's comments appear to have been the catalysts for downgrades of both Clearwire and Sprint resulting in higher financing costs not to mention the 30% crash in both stocks pps at the time.

      There was no "team success" effort there and

      Sprint literally snatched defeat from the jaws of success.

      That conference fopaux (or was it deliberate) came at a financially critical time.

      A better comment when asked would have been

      "Clearwire is the goldmine of spectrum bandwidth, we own 54% of Clearwire, and we intend to mine that gold indefinitely"

      The resulting perception of support for Clearwire (vs nonsupport by Sprint)
      would have increased the shareholder value of both Clearwire, Sprint, lowered borrowing cost, improved/maintained ratings, given the potential catalyst necessary to ignite the markets animal spirits positively, concerning the intrinsic values of both companies, as well as that of the enormous spectrum bandwidth's value disconnect (represented by Sprint and Clearewire PPS) (imho)

      Perception is reality, here the current reality was shaped by Hesse's comments. Hesse did quantifiable (by market response) harm to both Sprint and Cleawire.

      (Sprint owns 50% of CLWR making it even worse for Sprint and needs CLWR for bandwidth)

      Fortunately, Clearwire's intrinsic spectrum value
      (20billion estimated)

      and Clearwire's catalysts:

      1.)Exponential mobile spectrum bandwidth demand increases
      2.)Advanced TDD LTE 4g (100 meg 1gig)Clearwire/China Mobile global standard
      3.)Clearwire's cost effective 1b upgrade path (vs 10 billion for Sprint)

      All remain intact and provide increasingly compelling arguments as to the true value for Clear share holders. (imho dyodd)

      Best L

    • Elmaestro1111 is a genius!! Read from a few quotes from his latest posts. I can’t wait to read his next witty remark.
      2nd thought I think I can live without his brilliance, ignore...
      “you dumbass - you DICCCK - OMG, what DICCCK you are - What's your point dumbass? - OMG, ST -UPIDEST analogy EVER –“
      Yes, he’s a true literary genius, with so much depth in his posts.

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