Follow us:

Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

April 17, 2007 at 10:25 AM

Clearwire’s stock slips further

Clearwire, which is planning to build a nationwide wireless broadband network based on WiMax technology, saw its stock slip more than 60 cents early today to less than $18 a share.

The Kirkland company, founded by wireless entrepreneur Craig McCaw, went public only a month ago, raising $600 million by selling shares at $25 apiece.

The AP reported today that the stock slipped even as at least seven analysts initiated coverage of the wireless broadband network provider with positive ratings.

AP wrote that analysts from Morgan Stanley, JPMorgan and Stifel Nicolaus, among others, seemed to agree that the company’s stock is a good long-term investment, even though Clearwire will likely lose money for years.

In a note issued this morning, Jefferies & Co. said it too was initiating coverage on Clearwire, rating the company a “buy” with a $22 price target.

“While we view CLWR shares as speculative, given the company’s limited operating history, we also believe our PT (price target) is supported by the value of the company’s spectrum,” it wrote.

As a disclosure, Jefferies acted as co-manager on the company’s March initial public offering.

Jefferies also noted a number of risks the company faces:

— Clearwire is young and has a history of operating losses.

— The company will need to raise an additional $2.5 billion to $3 billion of financing prior to reaching a fully funded state.

— Jefferies believes most customers will use Clearwire’s service as a complement to existing broadband access, rather than as a replacement, potentially limiting the overall size of the company’s addressable market.

Comments | More in WiMax

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►