Clearwire Corp (NASDAQ:CLWR.DL)

CAPS Rating: No stars

The Company builds and operates next generation wireless broadband networks that enable fast, simple, portable, reliable and affordable Internet communications.

Recs

5
Player Avatar BuffettJunior1 (97.69) Submitted: 10/11/2011 7:11:02 PM : Underperform Start Price: $1.28 CLWR.DL Score: -252.26

This company is losing billions in free cash flow, and has been for many years. Why does it have a market cap of 1.2 billion?In fact, after I made some adjustments to the free cash flow for the most recent year, I divided it by the market cap. What this means is that for every dollar in market cap this company is losing $3.23. In other words, you idiots who are investing in this crap stock are paying the company to lose money. I don't know about you guys, but this doesn't sound like a good investment strategy to me.The company has a large amount of debt as well and it will have to use its cash on hand to pay interest and principal. It will keep issuing more shares and diluting existing shareholders just so it can prolong its eventual bankruptcy. I don't care what kind of deal this company makes with sprint (another bad company); it doesn't justify its current valuation. I think the best thing for this company is to cease its operation and sell off its assets. Perhaps this is the best thing for both the shareholders and creditors.

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