Kerrisdale Capital Releases Negative Report on Straight Path Communications Inc. (STRP) and Announces Conference Call Schedule
Straight Path Faces 70% Downside Following Market Overreaction to FCC Settlement
- In the wake of its settlement with the FCC, Straight Path must sell its spectrum -- and fast, lest it face additional penalties, including a potential re-opening of an FCC investigation.
- Kerrisdale believes that Straight Path is grossly overvalued relative to the price it will actually get for its spectrum.
- Verizon is set to buy a similar amount of comparable (yet superior) spectrum for only $200 million, setting a ceiling for Straight Path that is 60% below where the stock currently trades.
- The FCC's continued expansion of millimeter-wave spectrum supply further weakens Straight Path's position.
NEW YORK, Jan. 19, 2017 /PRNewswire/ -- Kerrisdale Capital, a private investment company, has published a report on Straight Path Communications Inc. (STRP), a $500 million company that holds and leases wireless spectrum licenses in the United States. Kerrisdale believes that Straight Path is worth 70% less than its current market cap given the low value of its portfolio of millimeter-wave spectrum, the large penalties it will have to pay the FCC, and the abundance of competing spectrum.
The full report can be found at http://kerr.co/strp2.
Kerrisdale has a short position in Straight Path and stands to benefit if the share price falls.
Conference Call Schedule
Kerrisdale will host a conference call on Thursday, January 19, 2017, at 10:30am ET to discuss the Straight Path report.
To participate in the conference call, dial 888-567-1602 (US and Canada) or 862-255-5346 (international) and reference the Kerrisdale Capital call.
A replay will be available following the call at http://kerr.co/strp-jan19
About Kerrisdale Capital
Kerrisdale Capital Management, LLC, is a fundamentally-oriented investment manager that focuses on long-term value investments and event-driven special situations.
Contact
Agnes Cao
Kerrisdale Capital
[email protected]
212-792-4385
SOURCE Kerrisdale Capital Management, LLC
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