Fcc investigation on stock back dating
Even consumers who regularly checked their phone bill line by line every month missed them.So what’s the bottom line for AT&T consumers affected by the settlement? I wonder, if there is anything I can do, since I am no longer a ATT customer.Reviewing a deal Verizon (vz) struck with Carl Icahn's XO Communications last year for similar airwave licenses, Kerrisdale estimates that the Straight Path licenses are worth 0 million at most–and the company must pay 20% of the proceeds to the Federal Communications Commission.Straight Path, which was spun off from telecom operator IDT (idt) in 2013, owns licenses covering the entire country in the 39 GHz band and additional licenses for the 28 GHz band, both of which are being assigned for upcoming faster 5G wireless networks.The high band spectrum is worth so much less given that it is not in serious commercial use yet and the FCC is likely to add many more licenses in those and near-by bands in coming years, Kerrisdale said."Multiple carriers will find it easy to acquire very large amounts of spectrum just like Straight Path’s without having to engage with the company at all," Kerrisdale wrote."No one is clamoring to scoop up Straight Path’s particular holdings."After forecasting a sale price of 0 million and given the additional money due to the FCC, Kerrisdale calculated that Straight Path was worth .94 to .45 per share, or at least 68% less than the stock's closing price of .70 the day before the report came out.Straight Path also announced it had hired investment bank Evercore to conduct a review of "strategic alternatives to maximize shareholder value."Wireless carriers are racing to deploy 5G equipment and test new services, but Kerrisdale maintains that plenty of suitable airwave rights are available at low cost.As an example, the fund cited Verizon's option in its deal with XO to pay only 0 million for XO's licenses.
As I asked back then: [S]houldn’t the First Amendment have something to say about this broad regulation of truthful speech?After hitting a high of last spring, the stock plummeted to under amid the FCC investigation.But after the FCC announced a settlement with Straight Path last week, the stock shot back above .Shares of Straight Path dropped as much as 12% after the report from Kerrisdale Capital, a New York City-based fund that shorts stocks, or bets that prices will fall.The stock closed down 6% to .27."Straight Path's spectrum is worth far less than the company’s current half-billion-dollar market cap," Kerrisdale noted in a 12-page report.