Bloomberg, look what you did...Lightsquared, an LTE provider, was blocked by FCC, (http://www.gpsworld.com/gnss-system/news/congressional-committee-blocks-fcc-approval-lightsquared-11818) This means Sprint's $20 billion deal, reported by Bloomberg, with Lightsquared is out of the window. Even though Sprint nor Lightsquared said a word of this matter, this brings focus back on Clearwire. Clearwire has been tightening their operation over the year. On one side, Clearwire is a takeover candidate and has a lot of upside due to its potential on utilizing wireless spectrum. On the other hand, they are broke with uncertainty. Sprint will continue to pump funds in the near future, but there is one thing that will be the catalyst for investors of both Sprint and Clearwire. That is LTE. It doesn't even need to be faster, they just need to announce it for all I care. Oddly, Clearwire's stock is down today. Sprint is up due to its hint of enterprise expansion. For investors, hold off on this stock. It looks to head below $5 until something substantial is announced.
Now for macroeconomics jabber. I think 2012 will be a good year for equities. I think we've suffered enough from Bush's tax cuts. Gas prices will go down temporarily due to someone magically releasing gas reserves, but will ultimately be flat with the strengthening of the dollar. And the lost jobs should come back by summer 2012. That is just my perspective. In succession: tax cuts, budget deficit, realization, reform catalyst, expansion, tightening, recover. Let's just hope the world doesn't come to and end.
No comments:
Post a Comment