And the stock market has been kept alive by the U.S Federal Reserve
printing too much money (inflation of the money supply) and by the yen
"carry trade" where people borrow money at 0.5% in Japan and invest it
into stock markets where they hope to make 20% in speculative profits.
This "carry trade" is now "unwinding" (going into reverse) and with it,
the world-wide stock markets and the U.S. sub-prime home mortgage market.
http://www.kitco.com/ind/Laird/mar142007.html
In short, we've been living in an overinflated asset "bubble" brought on
by excessive world-wide Central Bank printing of money, too-low U.S.
Federal Reserve Bank interest rates, excessive Wall Street greed, and
unethical mortgage-banking industry practices. This trillion-dollar
asset/liquidity bubble is now starting to deflate.
Everyone better hang onto their hats...
jack
Tom DeReggi wrote:
Who says they ever have to make money, for their stock to hold or
increase its value?
And who says a profit needs to be made for a company to survive long
term, when they are kept alive by the stock market?
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
----- Original Message ----- From: "Brad Belton" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>; "'WISPA General List'" <wireless@wispa.org>
Sent: Wednesday, March 14, 2007 11:55 AM
Subject: RE: [WISPA] Clearwire stock dropping
Correct and that I believe is what Matt's point is. Too early to kick CLWR
to the curb for at least two reasons:
(1) short term market downturn
(2) additional 4M shares issued
Both of these items can and often will soften a stock value.
All that said I think $20 - $24 a share is ridiculous for CLWR. I expect
CLWR will bump back up maybe even beyond the IPO price once the market
bounces back. The smart money will jump ship saving their skin and the
stock will turn downward from that point on.
"Clearwire has lost more than $460 million during its four-year existence.
The company generates about $100 million in annual sales..."
Certainly McCaw can afford this type of bleeding, but for how long and more
importantly how long will Wall Street wait to see the light at the end of
the tunnel? Will CLWR ever bask in the sunshine?
Long term I only see a decline in value unless they start producing profits
real quick! CLWR isn't making any money and doesn't have a bright
future of
EVER making any money. Hope I'm wrong because a CLWR failure is a failure
for fixed wireless as a whole.
Best,
Brad
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Peter R.
Sent: Wednesday, March 14, 2007 9:37 AM
To: Matt Liotta
Cc: WISPA General List
Subject: Re: [WISPA] Clearwire stock dropping
Matt Liotta wrote:
It seems premature to suggest that Clearwire is tanking. When you
consider that an additional 4 million shares were issued and that the
overall market is currently down, I think their stock has move as
expected. I bought in at $20.68 and am quite happy with my position.
-Matt
Issuing the extra 4 million shares actually diluted the value of the stock.
--
Jack Unger ([EMAIL PROTECTED]) - President, Ask-Wi.Com, Inc.
FCC License # PG-12-25133
Serving the Broadband Wireless Industry Since 1993
Author of the WISP Handbook - "Deploying License-Free Wireless WANs"
True Vendor-Neutral Wireless Consulting-Training-Troubleshooting
Phone (VoIP Over Broadband Wireless) 818-227-4220 www.ask-wi.com
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