Quote:
Originally Posted by BooLoo
this strp bidding war just shows that some of the people doing m&a for the big firms are either idiots, thinking as far as their next bonus check or both. i'm really no expert on spectrum, but my guess is 2 or 3 years ago they could have easily bought them for half or less. am i wrong?
A lot cheaper than half, try 5% of the current price.
STRP is currently worth $1.9 billion ($154). 1.5 years ago STRP was selling for $100 million. The whole company. No joke. A mere 1.5 months ago it was selling for $400 million. You probably could have gotten it even cheaper if you put some pressure on the FCC to make STRP release their improperly/fraudulently held spectrum.
Spectrum has always been finite and knowable, as has the promise (or not) of 5G technologies. There is plenty of more useful competing spectrum; the shortage of spectrum which was the bull case has always been a myth. It's not like some magical new GHz just appeared or disappear; this is basic physics and known a decade in advvance. That was the core of the argument why it was probably worthless. I think the bears agreed with me given how few were buying or posting when it dropped 80% some months after I ripped it.
My feeling is this is probably a brilliant backdoor deal to make a couple of people at AT&T rich. It's happened before, and for larger numbers. Major player makes a bid on something everyone thinks is worthless, thanks to a couple of key people pushing it. Other players get it on their radar and decide they don't want to lose that much spectrum or that AT&T must have some new technology. If the other bids are even real. Then STRP stock - a lot of which is held and borrowed out by insiders - gets called back, causing a huge short squeeze.
Who knows what's really going on. Nothing here makes much sense. We were right to rip it - it was a horrible play. I'd bet a number of bulls sold out when it crashed after the fraud/improper spectrum licenses were revealed back in '15.