Dendrite Research
Deep value, special situations

Straight Path Communications: Undervalued Microcap Spinoff With Multibagger Potential

Executive Summary

-Mobile data use is doubling every 15 months

-Telecoms are rapidly building out their networks to deal with increased demand

-Straight Path Communications (NYSEMKT:STRP) owns a large chunk of wireless spectrum which will soon play a critical role in this infrastructure buildout

-Base case estimates fair value at 100% above current market price

-Bonus patent infringement lawsuits could provide another 85% upside

Straight Path Communications is a micro-cap stock (market cap $100 million) whose principle asset is wireless spectrum. They own 70% of the nationwide spectrum in the 39-GHz range. As I'll show, this spectrum will be a very important part of the solution for growing mobile data demand. STRP will likely be taken over by...

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