CLEARWIRE (CLWR) - Bang or Bust? Message Board

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Technology Stocks : CLEARWIRE (CLWR) - Bang or Bust?

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From: Rob S.	9/9/2011 3:55:38 PM
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Selling puts is risky business: a friend was doing great for several years leading into the big drops during the collapse of the Internet-telecommunications bubble. At first he was doing extremely well as he wrote puts as the market dropped off a cliff to levels that were, for a short period, extremely oversold 'blood in the streets' moments. Unfortunately that caught up to him when he was put large numbers of shares to the point it exceeded the funding in his account. He was forced to liquidate positions at a huge loss. A large portion of the work of the previous few years quickly evaporated. --- Its difficult to juggle the several conflicting trends without getting caught up in them adversely: 4G is emerging and is growing rapidly, taking marketshare in an overall market measured in the 100s of billions of dollars (actually well over $1 trillion worldwide). That is a lot of headroom for letting your thinking go bonkers. On the other hand, the world economy is going through a major restructuring that is witnessing the bankrupt western economic interests giving way to emerging and international technology and commercial trends. A consequence of that is US based manufacturing and services companies find it difficult to compete internationally due to antiquated preferenced industries and tax codes, while capital sources have fled to the greener pastures of derivative financial instruments, and foreign shores. While the prescription has long been to take away the punch bowl from the slovenly drunken economy, the remedy now looks worse than the immediate benefits... and the straw dogs will fight over the carcass. There will be pain to achieve forward progress... and that will include domestic economic shortfalls imo. The impact on CLWR has already been that money is not sloshing around to be picked up as easily as during bubble periods. Clearwire finished the first phase use of a small portion of their spectrum but finds it no so much a party getting financed for the second or third rounds going forward. That has helped change the character of their dependence on Sprint for both subscriber growth and financing and has likely contributed to the tameness of participation of the cable companies and other operators as well. --- There is a bright side to the picture but its good not to let it go to your head: The 'highway to the future' is dependent on people and companies taking advantage of pervasive BB to flatten their organization, fuel innovation, and reduce costs. Clearwire is a wholesale supplier of that largest staunch of spectrum in the USA.. and among the very largest in the entire world. The usage and technology trends are proven to be heading to need more spectrum... if it can be delivered effectively. "These are truths that we hold as self-evident, that all available spectrum will be needed and then some 500MHz more." so says CTIA, ITU, 4G Americas and many others.

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