Straight Path Communications Inc.- NYSE: STRP
Straight Path Communications Inc. opened Thursday at over $50 after closing Wednesday at $31.41. The shares, traded on the Nasdaq under ticker STRP, are heavily shorted by the market– with a short float ratio of over 46%.
Shares of STRP benefited from the termination of an FCC investigation. Straight Path can now move forward with the vast majority of its nationwide 39 GHz spectrum fully intact, and its 28 GHz spectrum unchanged. Both of these spectrum bands, 28 and 39 GHz, were the recent beneficiaries of a July 2016 FCC rule change. The change allows these bands to be used for mobile wireless and is central to the industry-wide push to 5G, in order to provide higher speeds to hundreds of millions of consumers and businesses throughout the U.S. Straight Path agreed to pay the FCC 20 percent of the value received from a sale of its spectrum assets. If Straight Path does not announce a transaction within 12 months, it will pay another $85 million to the FCC (or return its spectrum licenses to the FCC).
CEO Davidi Jonas commented “We are pleased that we were able to achieve a comprehensive settlement with the FCC, which allows us to move forward as the largest holder of 39 GHz spectrum, with about 95 percent of the total licenses commercially available at this time, as well as a significant holder of 28 GHz in major markets, including New York and San Francisco. These licenses allow us to continue as a leader in the next frontier of telecommunications.”
STRP opened the trading session at $51 before trading pushed shares lower and eventually settled at $41.13 on heavy volume. Straight Path Communications Inc. is not followed by any analysts. In 2016, Straight Path Communications reported an EPS loss of $0.70 on sales of $700,000.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
|Last Price a/o 4:00 PM EST||$ 41.13|
|Market Cap||$531 million|
|Shares Outstanding||12.9 million|
|Share Float||5.82 million|
|Short Interest Ratio||16.09|