Will Clearwire’s Stock Continue Its Ascent?

E = Equity to Debt Ratio Is Weak

The debt-to-equity ratio for Clearwire is on the high side. The balance sheet is in negative territory, but there are much worse situations out there in that regard. MetroPCS Communications (NYSE:PCS) and Leap Wireless (NASDAQ:LEAP) have been listed for comparative purposes.

Debt-To-Equity

Cash

Long-Term Debt

CLWR

1.86

$1.18 Billion

$4.27 Billion

PCS

1.44

$2.57 Billion

$4.78 Million

LEAP

6.35

$623.03 Million

$3.20 Billion

 

T = Technicals on the Stock Chart Are Mixed

Clearwire’s stock has moved violently this year, but overall it has performed well. The same can’t be said for the three-year timeframe.

1 Month

Year-To-Date

1 Year

3 Year

CLWR

42.12%

62.63%

46.74

-48.95

PCS

-1.77%

14.98%

17.00%

43.60%

LEAP

12.69%

-27.34%

-16.04%

-55.80%

 

At $3.16, Clearwire is currently trading above all its averages. This makes a $2.90 bid look enticing.

50-Day   SMA

2.07

100-Day   SMA

1.79

200-Day   SMA

1.68

 

E = Earnings Are Poor, But Revenue Has Been Impressive

Annual revenue is the most impressive component for Clearwire. However, this company is due to lose $1 billion this year.

2007

2008

2009

2010

2011

Revenue   ($)in   millions

N/A

20.49

243.77

535.10

1.25B

Diluted   EPS ($)

N/A

-.28

-1.74

-2.46

-3.07

 

The last quarter tells a different story YoY. Revenue decreased while earnings improved, or perhaps we should say that earnings were less worse.

9/2011

12/2011

3/2012

6/2012

19/2012

Revenue   ($)in   millions

332.18

361.87

322.64

316.93

313.88

Diluted   EPS ($)

-.54

-.59

-.44

-.33

-.34