Hi SW and others:
Since you all seem so positive on ARTT, let me present
the contrarian argument. At present, ARTT's operations are just
limited to a few cities, so it is primarily a wireless spectrum
play. Let's divide the spectrum rights into two distinctive
pots:
a) Domestically, about 100MHz to 200MHz worth of spectrum
in many primary and secondary cities.
b) Spectrum rights in Great Britain and Scandinavia.
With respect to a), why should any buyer pay top dollar
for ARTT when the FCC will soon auction off 1.6GHz
worth of spectrum in 100MHz slices in all BTAs? Grabbing
one or 2 slices in key markets would give a would-be
buyer the same as what ARTT already has.
With respect to b), why would WCII be interested in ARTT's
foreign licenses, since it has now gained spectrum
rights in Great Britain.
Finally, when ARTT's CEO indicates he is evaluating
financing options, what makes you thing he is not talking
about vulture financing? This is exactly the same kind
of speech the CVUS CEO used to make before issuing
floorless converts. Admittedly, ARTT looks a lot
better than CVUS. Yet, it spectral assets and business
operations pale in comparison with WCII, TGNT and NXLK.
The bottom line is that ARTT looks like a risky
investment at current levels, and I do not view the
current euphoria as particularly rational.
Best regards,
Bernard Levy |
