Stock Alert for Clearwire Corp. (CLWR)
  • Stock Alert for Clearwire Corp. (CLWR)
  • Stock Alert for Clearwire Corp. (CLWR)
  • " />

    Stock Alert for Clearwire Corp. (CLWR)

    Clearwire Corp. (CLWR), through its operating subsidiaries, is a provider of mobile broadband services. Its 4G network currently provides coverage in areas of the U.S. where more than 130 million people live. The Company’s open all-IP network, combined with significant spectrum holdings, provides an unprecedented combination of speed and mobility to deliver next generation broadband access. CLWR markets its 4G service through its own brand called CLEAR® as well as through its wholesale relationships with companies such as Sprint, Comcast, Time Warner Cable, Locus Telecommunications, Cbeyond, Mitel, NetZero and Best Buy. Its strategic investors include Intel Capital, Comcast, Sprint, Google, Time Warner Cable and Bright House Networks.

    Share Statistics (04-Nov-11)   FY

    2009

    FY

    2010

    %

    Chg

    Q1

    2011

    Q2

    2011

    %

    Chg

    Symbol CLWR Revenue, $Mn 274.46 556.83 102.9% 236.81 322.61 36.2%
    Current price $1.89 Gross marg. -56.1% -66.6% 18.7% 1.4% -34.3% -2550.0%
    52wk Range: $1.24-$7.37 Oper. margin -397.8% -282.6%
    Avg Vol (3m): 8,128,460 Net margin -118.6% -87.5% -26.2% -95.8% -52.3% -45.4%
    Market Cap. 469.67M              
    Shares Outstanding 248.50M EPS, $ -1.69 -1.63 -3.6% -0.43 0.34 -179.1%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    CLWR shares spiked as much as 29% on Friday on news that telecom giant Sprint Nextel Corp. (NYSE: S) intends to offer debt in a private transaction and could use the proceeds to help finance the wireless carrier.

    Shares in CLWR have lost 5.5% in the last five days; 12.1% in the last month; and 73.6% year-to-date.

    Sprint Nextel is CLWR’s majority stakeholder, as well as its biggest customer. CLWR shares were hammered down last month after Sprint revealed plans for adding 4G services using the LTE standard, which observers saw as a move that the latter is distancing itself from CLWR. CLWR argued that the telecom giant remains dependent on CLWR for 4G and nothing about the Sprint’s move changes that.

    CLWR last week announced its financial and operating results for the third quarter of 2011.

    The Company reported revenue of $332.2 million, representing increase of 134% from the comparable quarter last year.  Retail revenue and other revenue for the quarter was $195.0 million, a year-over-year increase of 55% from $125.6 million in third quarter 2010. Retail average revenue per user (ARPU) came in at $47.05, up from $43.10 in third quarter 2010.

    Adjusted EBITDA in third quarter 2011 was a loss of $46.4 million, representing a sequential improvement of $62.1 million when compared to second quarter 2011 pro forma Adjusted EBITDA loss of $108.5 million. When compared to second quarter 2011 actual Adjusted EBITDA loss of $79.6 million, Adjusted EBITDA for the latest quarter improved by $33.2 million.

    CLWR recorded a net loss from continuing operations attributable to the Company of $83.5 million, or $0.34 per basic share. Including the effects of discontinued operations, the net loss attributable to the Company was $84.8 million, or $0.35 per basic share.

    At the end of third quarter, CLWR said operated networks in the U.S. covering areas where approximately 135 million people reside, including approximately 133 million people in 4G markets in the U.S.

    Looking forward, CLWR now expects to exceed its previous guidance of 10 million subscribers by the end of the year, with most of the new subs      cribers coming from its wholesale business. Before any impact of an LTE deployment, the Company now expects capital expenditures in 2011 to be less than $300 million, about $100 million lower than previous guidance.

    Source:

    http://corporate.clearwire.com/releases.cfm

    http://www.reuters.com/article/2011/11/04/sprint-clearwire-idUSN1E7A30IS20111104?feedType=RSS&feedName=bondsNews&rpc=43

    Financial Strength (04-Nov-11)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.78 1.50 1.41 0.60
    Current Ratio (MRQ) 1.80 1.63 1.53 0.93
    LT Debt to Equity (MRQ) 460.37 39.49 44.79 98.06
    Total Debt to Equity (MRQ) 460.37 48.25 54.47 138.26
    Interest Coverage (TTM) -19.45 0.02 0.11 20.70

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

     

    CLWR is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent price action.

    CLWR’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Nov04-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    CenturyLink Inc. CTL 36.23 21.79B 22.36 20.59 1.17 1.20
    Verizon Communications Inc. VZ 37.17 105.23B 16.90 14.52 0.95 0.91
    Wireless Communications Median       13.14 n/a 1.06 n/a
    Clearwire Corp. CLWR 1.89 469.67M n/a n/a 0.38 0.28

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

    Leave a Reply

    Your email address will not be published. Required fields are marked *