Clearwire Corporation (CLWR): Is This Stock Destined for Greatness?

If Clearwire rejects the buyout, who else will come to its rescue? The new company would already own a controlling interest (as Sprint Nextel Corporation (NYSE:S) currently holds 52% of Clearwire), discouraging other attempts to buy it out. Also standing in the way of greater shareholder returns is the revelation that a number of Clearwire executives stand to gain handsomely in the event of a Sprint buyout (offered on weak terms of $2.97 per share) — and will gain regardless, but at a slower and less convenient rate. The insulting terms and evident corporate payoff by big daddy Sprint have caused a bit of a shareholder revolt. Where will that lead if and/or when DISH and Sprint become… DINT? Sprish? I’m sure they’ll come up with a better name.

Clearwire can’t afford to be left out in the cold, and Sprint has no reason to abandon its prime spectrum provider, but the battle between various shareholder camps is likely to heat up if this new merger approaches completion. Legal battles might even undermine heavily indebted Clearwire’s ability to secure financing in the near future, which could be catastrophic. Clearwire shareholders had better hope that DISH is more interested in a fair deal than Sprint has been so far.

Putting the pieces together
Today, Clearwire has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Clearwire’s Stock Destined for Greatness? originally appeared on Fool.com.

Fool contributor Alex Planes has no position in any stocks mentioned, and neither does The Motley Fool.

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