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.

October 5, 2007 at 1:32 PM

Clearwire’s stock sinks on several issues

Clearwire’s stock fell $3.23, or nearly 14 percent today, to $20.38, representing the largest drop since the company went public. The decline came after a series of events spooked investors, according to Bloomberg.

Here’s some of the factors:

— Bear Stearns cut its rating on the Kirkland company’s stock to “peer perform” from “outperform.”

— Bear Stearns said there may be delays in signing a final agreement with Sprint Nextel to co-build a nationwide WiMax network.

— Bear Stearns said a delay could mean Clearwire needs to borrow more money.

— Sprint Nextel is quietly seeking a replacement for CEO Gary Forsee, according to the Wall Street Journal, citing “people familiar with the matter.”

— A major rainstorm with possible winds brewing could knock down its network in Seattle.

OK, I’m kidding about that last one, but a number of things obviously could affect Clearwire’s short-term performance.

Following the slide, Sid Parakh, an analyst with McAdams Wright Ragen in Seattle, reaffirmed its $28 price target.

He said concerns about Sprint’s turmoil are valid, but in a nutshell, Clearwire is still on track as a standalone company. It is on target to build out networks in its territories on time, and it has sufficient funds to do so at least until sometime in 2008, he said.

“In addition, CLWR has powerful partners in Intel and Motorola that, we speculate, may be open to the idea of added investments in Clearwire,” Parakh wrote.

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 ►