Clearwire stock price plummeting fast

[ericdabbs]

Clearwire has been on a huge downturn as of late and is currently at $0.86/share. The downturn is related with funding issues and investors are worried that Clearwire has a funding gap and may not have enough funding to last until next June. Investors were hoping that Clearwire would be selling some of its spectrum to help fill in the funding gap vs. going out in the open market and raising more money.

 

I wonder if Sprint at some point will take advantage of this to increase their stake in Clearwire again since Sprint is determined to keep Clearwire alive since they will be using Clearwire for offloading traffic. I am sure at this point it is too risky for Sprint to take it over entirely since Clearwire is still in the midst of working closely with the GTI for TDD-LTE. Sprint needs to focus on executing Network Vision and doesn't need the distraction. What do you guys think?

 

http://www.fiercewireless.com/story/clearwires-funding-issues-spook-investors-pushing-shares-below-1/2012-07-25

[ChadBroChillz]

It is a balancing act. I could see them buying out google's shares( if they havent sold them already) or buying some of the CableCo shares or tossing them some cash to hold them over via network deal. I think buying shares would be smarter, since they get more control, and it will reduce the price necessary for them to buy the rest later.

[ericdabbs]

It is a balancing act. I could see them buying out google's shares( if they havent sold them already) or buying some of the CableCo shares or tossing them some cash to hold them over via network deal. I think buying shares would be smarter, since they get more control, and it will reduce the price necessary for them to buy the rest later.

 

I agree...Sprint should buy out shares from the cable co's to reduce their stake in Clearwire since they are now sleeping with Verizon. It should be a win-win for both sides. Also Google has already sold their stake in Clearwire at a huge loss of 453 million back in Feb 2012.

 

http://www.eweek.com/c/a/Mobile-and-Wireless/Google-Sells-Clearwire-Stake-at-a-Big-Loss-888192/

[marioc21]

The problem, I believe, is that Sprint does not want to take on Clearwire's debt load until it has a much sounder financial footing. It may not have the luxury to wait that long. These price declines are predicated on the belief that Clearwire will hit a funding crunch in 2013. There's still a lot of time between now and then.

[miguell2]

The problem, I believe, is that Sprint does not want to take on Clearwire's debt load until it has a much sounder financial footing. It may not have the luxury to wait that long. These price declines are predicated on the belief that Clearwire will hit a funding crunch in 2013. There's still a lot of time between now and then.

 

I agree with that. If I was Sprint I would wait until the last possible minute and come with their white (or green) horse to save the day, no need to be rash...

[alphnasx]

ClearWire been advertising & should get money from new retail subs & NetZero is advertising now too. i got Netzero Flyer the other day. i see clearwire beating on revenue, lower losses. want to hear abt vendoring financing for LTE equipment & new wholesale agreement & international roaming agreement

Edited July 25, 2012 by alphnasx