<...But how do you explain the large short interest???..>
BLEEDING cash to the buildout, misunderstanding of BB fixed wireless, an easy to target float, a big runup and not least - Morgan Stanley's bearish research reports.
If a Goldman or Morgan wrote bearish reports on TGNT, you'd see some shorting there too, though the float is much smaller. The others aren't in the same BB wireless business, which is easier to dismiss. It IS surprising to me that ARTT's short position is so light.
In any case, is your concern that BB wireless tech doesn't work? Or that customers won't sign up for it? Or that WCII doesn't plan to deploy it? If any of these could be true, I would have concerns. That WCII plans to have 100-125 hubs up over the next 5 months, and a vendor surprise in the next two weeks, may say something about their otherwise previously slow migration to on-switch and net.
This market is pretty funky, so who knows what kind of intermediate term valuations we might get. But as long as inflation is not here and interest rates stay low, and baby boomers are bringing home that pay check with no real hope for social security, where are they gonna put it? And what will capture their minds, and disposable and investment dollars more than the REAL internet capabilities when HBW LL (and the inevitable concomittant applications) start becoming available over the next couple of years?
It really is a brave new world, and WCII just happens to have some great real estate in it. Now if any of the 3 concerns above show signs of possibly being true, I'll get worried (for the longer term). In the meantime, it may be a painful 3-6 months or more for the whole market and especially growth stock valuations. |
