David, you are missing something. This is from the latest 10-k:
"On July 30, 1991, the Company filed a request for a Pioneer's Preference and on January 23, 1992 and June 2, 1993, filed supplements to that request. A Pioneer's Preference would have given the Company an exclusive right to an FCC License without having to bid in an auction, although the Company would still have had to pay for its license. In November 1996, an FCC appointed panel recommended that no Pioneer's Preference be granted. The Company subsequently withdrew its application for a Pioneer's Preference."
In summary, people were willing to pay $13 for CDRD a year ago when there appeared to be no risk about getting an FCC license, and people are willing to pay $13 now when there also appears to be no risk. For a while there, people were not sure that CDRD would get a license so the stock price dropped.
Be aware that after the stock hit $14 a year ago, it dropped to under $6 before the Pioeneer's Preference was denied. At that time there appeared to be no risk, same as now. |
