Clearwire Corporation, upside

Shares were up 3.66% yesterday after CEO Dan Hesse of Sprint said that it remains committed to Clearwire Corp. This is logical because Sprint holds 54% of the stock. A stock that has been cut in half since obtaining it. Volume was also high due to merger talks with Deutcshe Telekom's T-Mobile USA. Anyone who heard the rumors the day before would of known that Clearwire's stock would of been affected too.

As for technicals, CLWR has been in growth recession. I conclude it is due to the masochistic expanding of the WiMAX network and setting up retail. It's wholesale partners including Sprint, Comcast, Time Warner Cable, etc. must be getting peeved at the lack of EPS that has been getting released these past 3 quarters. Debt is increasing and there is no one to appease the situation. It is also useless to hope for all that debt to disappear.

However, there is silver lining. Revenue has been increasing. 23% last quarter and 16% the quarter before that. It also growing faster that the cost of revenue. Clearwire also has a lot of valuable assets.  It is evident that Clearwire expanded a lot this past quarter due to of the lack of current assets and almost double in tangible assets. With Sprint's reaffirmation with Clearwire, I find this to be good news. There has also been a lot of insider trading. Analysts are averaging 23% growth next quarter. I am a skeptic, but I would be satisfied with half of that percentage. Things are looking up, even with the rain of oil.

Disclaimer: I do have holdings of CLWR. I also was hyped to see an increase of traffic in my blog.

Sprint CEO Hesse Says `Every Option' for Future Involves Partner Clearwire - Bloomberg