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  • 10 Stocks For The Smartphone Age [View article]
    RFMD has a beta of 2.3, essentially double the beta of swks, which is 1.16

    http://bit.ly/spRSiT
    Dec 28 12:41 PM | Likes Like |Link to Comment
  • How A Bizarre Ownership Structure Creates A Compelling Opportunity In Clearwire [View article]
    we have also thought about such an outcome, where sprint decides to retake its controlling stake. there are several problems with such a move. some of sprint's debt is structured in such a way that IF CLWR defaults on its debt, sprint itself is held in default. the risk of a cross-default was the reason for sprint reducing its majority stake in the first place.

    http://bit.ly/vYEwnh

    sprint is far more leveraged than AT&T or Verizon, and as such, it needs to go to the debt markets more often. Sprint recently raised billions in the debt markets to fund the Network Vision project. if it holds a majority of CLWR, it will have to consolidate CLWR onto the balance sheet, including CLWR's billions in debt. while we (as stockholders of S) feel that the assumption of CLWR debt is worth consolidating the spectrum as well, sprint bondholders have indicated that they do not support such a move. Given that Sprint needs to keeo bondholders happy to get sustainable rates in the debt market, sprint will most likely avoid taking a controlling stake in CLWR unless it comes on the back of a major investment in sprint (via cable co's, PE, etc...)
    Dec 27 05:44 PM | Likes Like |Link to Comment
  • How A Bizarre Ownership Structure Creates A Compelling Opportunity In Clearwire [View article]
    dish ceo charlie ergen is a very dynamic character. he has mentioned repeatedly that he wants to either go it alone in developing his company's spectrum, or partner with a company, such as T-mobile. we do not think that dish will sell, because ergen is a very tough negotiator. he knows the true worth of the company, and the price he is willing to sell for will most likely be out of the price range of any company that actually wants the assets
    Dec 27 12:33 PM | Likes Like |Link to Comment
  • How A Bizarre Ownership Structure Creates A Compelling Opportunity In Clearwire [View article]
    yes, this article on public company bankruptcies outlines it

    http://bit.ly/vrbkCK

    we would assume that Clearwire shares would be delisted from the NASDAQ (listing rules prohibit bankrupt companies from trading on the NYSE/NASDAQ). upon selling the spectrum (and possibly other assets) Clearwire would begin to pay off all the claims against the company, starting with bondholders, then the other creditors, and lastly the common stockholders. after all the claims are settled, holders of CLWR Class A stock would see their shares exchanged for cash
    Dec 26 03:12 PM | Likes Like |Link to Comment
  • How A Bizarre Ownership Structure Creates A Compelling Opportunity In Clearwire [View article]
    yes, Clearwire's publicly traded stock is the Class A, under symbol CLWR. Clearwire's bylaws are clear that in a liquidation, they are the only type of investor that have rights to proceeds from a liquidation
    Dec 26 03:05 PM | Likes Like |Link to Comment
  • How A Bizarre Ownership Structure Creates A Compelling Opportunity In Clearwire [View article]
    we would simply buy CLWR stock. since we do not trade options, we are not 100% sure what would happen to options in a bankruptcy. CLWR bonds could also be an interesting investment, since they are backed by CLWR's spectrum, which is worth much more than $4 billion.
    Dec 26 03:03 PM | Likes Like |Link to Comment
  • How A Bizarre Ownership Structure Creates A Compelling Opportunity In Clearwire [View article]
    while it is true that a S/T-MO merger has less competition concerns than AT&T/T-MO, the network incompatibility issue is one of great import. one of the reasons the nextel merger proved so disastrous was the fact that sprint was forced to run multiple network technologies. in your view, how would that be resolved in a Sprint/T-MO merger?
    Dec 26 03:01 PM | Likes Like |Link to Comment
  • How A Bizarre Ownership Structure Creates A Compelling Opportunity In Clearwire [View article]
    glad to hear you liked the article. here are the responses to your questions.

    1) in liquidation, only class A stockholders of Clearwire Corporation receive any of the proceeds. all other stock classes receive only the par value of their shares, meaning that Class B stock in Clearwire Corporation is essentially worthless in liquidation. for sprint to take part in liquidation, they would have to convert their class b stock in clearwire corp into class A stock. but in doing so, Sprint must give up its holdings of Class B Clearwire Communications Units. So it is true that Sprint will take part in a liquidation, but not at the expense of other Class A stockholders.

    the company's bylaws, as spelled out Clearwire's 10-K, which is linked to below, state that one Class B share in CLearwire Corp + one Clearwire Communication Class B Unit are convertible into one Class A share. as such, Sprint must give up its rights to Clearwire Communications to receive any proceeds.

    http://bit.ly/tDiDdC

    2) at the very end of Sprint's 10-Q, it cites Clearwire's ability to operate and maintain its 4G network as a risk factor. unfortunately, it does not appear that either Sprint or Clearwire have disclosed what the fallout of a Clearwire bankruptcy would do to Sprint's 4G network. the assumption the article implies is that should bondholders seize the spectrum, they would try to extract as much cash from Sprint as possible, but there are no specific details on what would immediately happen to Sprint's network.
    Dec 25 04:30 PM | Likes Like |Link to Comment
  • First Solar: The Company Will Survive And In Time, Thrive [View article]
    first solar has a profile of CdTe on its website

    http://bit.ly/uYEhE2

    the module are classified as non hazardous at the end of their lifecycle by the EU and by the US federal government
    Dec 23 10:39 PM | Likes Like |Link to Comment
  • First Solar: The Company Will Survive And In Time, Thrive [View article]
    while cadmium itself is highly toxic, the metal is well contained in the CdTe panel. if we are looking at undetected issues with CdTe panels, the issue is not the toxicity of cadmium, but the supply to tellurium, which is very rare. But, tellurium has few uses beyound CdTe panels, and large deposits have been discovered in the oceans.

    http://bit.ly/s0RJ3W
    Dec 23 03:40 PM | Likes Like |Link to Comment
  • First Solar: The Company Will Survive And In Time, Thrive [View article]
    the thing with commodities is that after an extended period of decline, they usually go the other way. already, solar executives are wary of a possible jump in polysilicon prices that have fallen 94% in the last 3 years, as per this bloomberg article.

    http://bloom.bg/tSW833

    first solar, which has weathered this period of low polysilicon prices (by weathered we mean maintained profitability), would most likely be a prime beneficiary of a rise in polysilicon prices
    Dec 23 05:04 AM | Likes Like |Link to Comment
  • First Solar: The Company Will Survive And In Time, Thrive [View article]
    apologies for any confusion our wording may have caused. what we mean with that statement is that investors who assume that they can cash out of FSLR with a meaningful gain in 1-3 years should not invest in it. to realize a meaningful return, investors will have to hold the stock for more than 1-3 years. we believe that FSLR is a buy here, for the reasons stated in the article, but that it will take some time for the company's strategic initiatives to bear fruit
    Dec 23 05:00 AM | Likes Like |Link to Comment
  • First Solar: The Company Will Survive And In Time, Thrive [View article]
    while that may be true, FSLR has proven that it is capable of building what utilities want. It has built many relationships with the leading utilities, and that can be just as important a factor as cost
    Dec 22 04:14 PM | Likes Like |Link to Comment
  • Buy Broadcom: A Chipmaker That Stands Alone [View article]
    broadcom's cash flow should replenish the cash balance fairly quickly after the Netlogic acquisition. the company is positioned well in the next 2-5 years. the analyst day presentation they give is quite thorough about their roadmap. while they may not have a meaningful presence in the ARM chip space, they are the leader in combo chips, and it has proven to be a profitable space.
    Dec 16 01:42 PM | Likes Like |Link to Comment
  • Activision Blizzard Vs. Electronic Arts: Both Are Good Buys [View article]
    it is true that video games are hit driven, but if any companies have come close to a sustainable earings stream in this industry, it would be ATVI and ERTS. we haven't found any public companies that sell into the video game industry. NetEase (NTES) is the operator of world of warcraft in China, so it is a supplier in that sense, however
    Dec 14 11:37 PM | Likes Like |Link to Comment
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