Wireless broadband service provider and recent IPO Clearwire
What analysts say:
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Buy, sell, or waffle? A total of 13 Wall Street analysts follow Clearwire. Of this group, 10 rate the stock a buy, while three put it on hold. In our Motley Fool CAPS investor database, 79 of our 28,000 rated players have a very different outlook on the stock, collectively panning it with the lowest one-star rating.
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Revenues. On average, analysts predict revenue of $29.2 million.
- Earnings. The average analyst expects Clearwire to burn through cash like crazy, posting a loss of $0.58 per share.
What management says:
Backed by Intel
With minimal revenues coming in, the company's ambitious business plan will require a continued influx of capital, which the company intends to "raise through subsequent equity offerings, by increasing our debt, or a combination of the two." There's nothing obscure about Clearwire's intentions here -- investors will see a lot of red ink, for a long time, with an expected increase in either debt, share dilution, or both.
What management does:
Clearwire sold its NextNet equipment division to Motorola
2004 |
2005 |
2006 |
|
---|---|---|---|
Service Revenue (thousands) |
$243 |
$8,451 |
$67,598 |
Net Loss (thousands) |
$33,042 |
$139,950 |
$284,203 |
Subscribers (thousands) |
3.5 |
62.3 |
206.2 |
One Fool says:
To compete against telecom giants such as AT&T
So why is Wall Street so hip on Clearwire? Let's call it the Craig McCaw factor. McCaw has a track record in both the cable business and cellular business of placing early bets in industries that pay off big down the line. Investors bullish on Clearwire are hanging all hope on a three-peat success from McCaw.
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Fool contributor Dave Mock offers thoughts for pennies, but few take the offer. He owns shares of Motorola. Dave is the author of The Qualcomm Equation. The Fool has a disclosure policy.