Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

CLWR Holding Steady as Shorts Stay Away

|Includes: Sprint Corporation (S)

CLWR is up today after yesterday's announcement of a $300 million public offering that will be matched by Sprint.  I expect the deal to be priced soon at or above $2.25 per share.  As I noted in my recent article posted on SA, the shorts are staying away because the Company is close to getting fully-funded and the potential for a short squeeze is high.  This is yet another sign that the Company is on the road to recovery. 

Also, Bloomberg reports that UBS put out a research note today estimating 33% dilution at $2 per share - they are using the wrong formula to calculate dilution - it's actually around 25%.  Nevertheless, UBS calls the equity offering "transformative" for the Company and maintains their "overweight" rating on the stock.

See my latest article on SA (posted today) for more details and commentary on the offering and its implications.  SR