Clearwire Sees A High Amount Of Short Covering

Thu, 12/08/2011 - 15:34 EDT - Seeking Alpha

By SR Capital:Clearwire (CLWR) successfully priced its equity offering last night (12/7/11), selling 175MM shares to the public at $2. In the first half hour of trading this morning (12/8/11), volume exceeded the highest volume day since August when the new business plan was announced. This is due to massive short covering, as the shorts no longer have any reason to hang around - the offering is priced and the potential for negative surprises through 2012 is low. CLWR was one of the most heavily-shorted stocks on Nasdaq - so why didn't the price skyrocket when trading opened? The investors that were lucky (and smart) enough to be included in the offering were more than happy to oblige the shorts and take a 5%-plus profit overnight. The first hour of trading volume was equal to about one-third of the public offering, and exceeded the entire short position reported as of 11/15/11. TheComplete Story »

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Clearwire Sees A High Amount Of Short Covering

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