This morning Seeking Alpha published a greatly expanded version of the quick case I made for high conviction holding Clearwire at FundLaunch.
Here’s a snapshot:
Through the deployment of a network covering 135 million people, Clearwire has begun to gain significant momentum in the monetization of an asset that is unmatched in its industry – deep, wide, clean spectrum.
Shares are temporarily depressed due to elevated uncertainty about a number of tactical issues which will soon be resolved.
Shares now trade at $2.54.
Using conservative assumptions bordering on the pessimistic, per share intrinsic value is likely between $4 and $6, depending on the eventual terms of a pending $1.0 billion capital raise.
A more objective and analytically justifiable valuation of their spectrum puts shares closer to $16. That higher valuation has also been independently corroborated by the work of a well-respected value investor who appears to have been recently accumulating more shares.
Clearwire’s spectrum constitutes a margin of safety. There is a significant probability of large gains. New management is competent enough.
The former interim CEO and now Chairman, John Stanton, bought $5 million worth of shares on the open market in August.
Prior insider buying by Stanton as CEO of both Voicestream and Western Wireless resulted in phenomenal, multi-bagger returns. Several near-term catalysts exist.
You can read the rest in its entirety here:
And shoot me an email if you’d like a copy of the model.
Disclosure: Long CLWR. The above in no way constitutes investment advice. It is for educational and informational purposes only. Nothing contained here or on Seeking Alpha should be construed by anyone as an invitation or solicitation to buy or sell any security.