Hard to say what the price will be. Obviously they are already out trying to sell it.
I'm still comfortable that they will do it by Sept/Oct. time frame but obviously they are doing all they can to minimize the damage.
It is only a draft but it is one part of the government saying something wrong happened. Another part of the government (one who administered the auction) says nothing went wrong.
Think about Lightsquared. From a business perspective, it is pretty similar. Does it mean the build won't happen? Definitely could be but more likely it means a delay. As for the probabilities, I have no idea.
How much revenue growth do they need to get to break even?
If they get to break even what is an appropriate valuation?
Went at $2.17. Order didn't get completely filled but who knows, maybe it goes up again.
Should have said what I had to pay. 21%
Cheaper than what I've had to pay in the past but still not cheap.
I went short. Probably won't stay that way very long as there are lots of people just clamoring to buy garbage like this.
How could anyone give this post a thumbs down? It is clearly relevant and I can't imagine anyone saying bankruptcy isn't a distinct possibility if they have begin to produce these units and cancellation takes place.
All they have to do is split the public finance entity into a domestic and international units. Make sure you pay a big dividend out of the international unit too. Might as well throw in another big bonus for Brown as well.
The integrity of the New York public finance markets demand immediate action!
See, I got it wrong when I wrote the above. Towers are either junked or recommissioned. Both potentially wind up with equipment being junked.
Just admit you got it wrong. No big deal. I get lots of stuff wrong and will admit it.
The shutdown of the Clearwire network leads to the following questions in my mind:
1) Towers that remain. Obviously they will be recommissioned to LTE. My question is what happens to microwave equipment. Is it specific to Wimax? If yes, it gets junked. If no, they've got a lot of spare equipment sitting around which impacts future demand.
2) Towers that are recommissioned. Was the equipment usable in an LTE environment? If yes, then it keeps getting used. If no, it gets junked.
Someone get on the phone to John at Dragonwave!
Shuttering of substantially all CLWR/Dragon equipment is hardly nothing. Sprint buying nothing during the Network Vision project is hardly nothing.
It says something and I don't honestly know what.
If they were clearly stated then explain the mechanics to me. Allen was lying when he said that in the conference call.
Could be worthwhile to look at. I'm pretty sure I couldn't pull it all together so it would wind up being an exercise in futility for me.
The management companies within the group have assets but I don't know how much. Those are, at least theoretically, not regulated. If the insurance companies go down though I'm sure they would examine the related party transactions and try to argue they weren't arms length.
In the end, it all winds up being decided by the courts when things go bad. Will take years to sort things out if ACP backs out. The important thing though is that Lee sold his shares and got his severance before the deal broke down. If that isn't an example of poor corporate governance I don't know what is.
Have never heard anything bad about a Massachusetts regulator. TWGP ought to move all companies to New York where regulators have "significant discretion." Mostly joking there but I kind of mean it too.
So where did the money come from? It had to be a non-regulated company within the group. How much is there?
Of course regulators won't let them strip assets out, unless they were politically connected or regulator was corrupt, in which case they might. Ignoring those, then yea, it happens regularly.
You have to look at it at the subsidiary level. ACP can ultimately buy the group and if the lowest company in the group structure has a massive capital shortfall they might just be getting a deal as that company can go into rehabilitation and be deconsolidated from the group.
Personally, I don't think that is the case but I do believe that there are some pockets of value that are viable.
They got shares at around $1.20. They are up big time; at least for the moment.