Sahm Adrangi
January 19, 2017
Chief Investment Officer, Kerrisdale Capital

Straight Path Communications Inc. (STRP): Setting the Story Straight

  

· 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.

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