Clearwire Shares Surged: What You Need to Know (CLWR)

Clearwire Shares Surged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of wireless network operator Clearwire (Nasdaq: CLWR ) leapt upward 22% before pulling back in volatile trading after announcing a collaboration with China Mobile (NYSE: CHL ) to accelerate the development of 4G TD-LTE devices.

So what: TD-LTE, which stands for Time Division-Long Term Evolution, is being developed by China Mobile, and bears many similarities to regular 4G LTE that AT&T (NYSE: T ) and Verizon (NYSE: VZ ) are in the process of adopting. The announcement says that both companies have conducted successful trials and will work jointly to accelerate time-to-market availability and are hoping for commercial availability starting in 2012.

Now what: Financial terms of the arrangement were not disclosed, but the announcement is still a positive indication that although Clearwire may be down, it's not out. The move is another sign of Clearwire's commitment to building LTE into its existing WiMAX network after betting a little too much on the latter. The company is still hanging on by a thread as it burns through massive amounts of cash. Clearwire only has $78.8 million in cash and equivalents left as of last quarter, down from $1.2 billion only six months prior. Today's news is good, but it still may be too little, too late.

Interested in more info on Clearwire? Add it to your watchlist by clicking here.

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Fool contributor Evan Niu owns shares of AT&T, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of China Mobile. Motley Fool newsletter services have recommended buying shares of China Mobile and AT&T. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On September 14, 2011, at 4:12 PM, spokanimal wrote:

This comment by you is completely false and ridiculous, Mr. Niu:
"The company is still hanging on by a thread as it burns through massive amounts of cash. Clearwire only has $78.8 million in cash and equivalents left as of last quarter, down from $1.2 billion only six months prior. Today's news is good, but it still may be too little, too late"
Mr. Niu, I'm looking right at the transcript of CLWR's Q2 conference call and their cash and cash equivalents were $848 million!
What are you SMOKING!
Further, the company moved up it's EBITDA positive date to Q1-12... and you're calling that "hanging on by a thread"?
That EBITDA positive outlook is based on progressively smaller cash-burns each quarter and you characterize the cash burn as "massive"?
You need to be FIRED for this kind of garbage, Mister!
Spokanimal
Report this Comment On September 14, 2011, at 5:19 PM, thunderballfists wrote:

Agree with the above. Seems pretty irresponsible to post such a misleading article. Try adding up Cash/Equivalents + Short Term Investments next time. Duh.
Report this Comment On September 14, 2011, at 5:47 PM, combatcook99 wrote:

Is the goal at MF to just downplay every stock that they DIDN'T think about recommending?
Report this Comment On September 14, 2011, at 8:24 PM, Neoland wrote:

Way to go Spok - Keep these fools honest!
I sometimes wonder if being foolish is a pre-requisite to work for this reckless outfit.
Reminds me of the days when you had to constantly correct another MF "analyst" who used to bash LVS back in 2009. That was then, this is now. They should be paying you to do their job!

updated 21 hours ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

CLWR	$1.21		-0.01	-0.82%
Clearwire Corp		CAPS Rating:

VZ	$41.45		+0.06	+0.14%
Verizon Communicat…		CAPS Rating:

T	$33.69		+0.05	+0.15%
AT&T		CAPS Rating:

CHL	$50.99		+0.00	+0.00%
China Mobile		CAPS Rating:

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Clearwire Shares Surged: What You Need to Know

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Comments from our Foolish Readers

Report this Comment On September 14, 2011, at 4:12 PM, spokanimal wrote:

Report this Comment On September 14, 2011, at 5:19 PM, thunderballfists wrote:

Report this Comment On September 14, 2011, at 5:47 PM, combatcook99 wrote:

Report this Comment On September 14, 2011, at 8:24 PM, Neoland wrote:

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