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Friday, October 12, 2012

Top News: Clearwire Corporation (NASDAQ:CLWR) & JPMorgan Chase & Co. (NYSE:JPM)


Clearwire Corporation(NASDAQ:CLWR) canceled the appearance of Chief Financial Officer Hope Cochran who was to be present at the Deutsche Bank conference on Thursday. This gives credence to reports that the company is playing a significant role in the deal involving Softbank and Sprint Nextel, its major stakeholder as well as network partner. However, Clearwire gave no reason for the cancellation. The company controls huge chunks of spectrum in the U.S.

Clearwire shares went into a tizzy, up all of 70 percent on speculation that Softbank is interested in buying part or all of Sprint centers on Clearwire. Sprint has a 49 percent stake in Clearwire. This morning, the stock is volatile and was recent down 1.40%, off session high of $2.52.

Clearwire plans to launch a next generation network called TDD LTE. Japan based Softbank, the third largest wireless carrier in that country, is trying to build a similar high speed network.

Softbank is likely to invest billions of dollars in Sprint Nextel which would help the company to reduce debt as well as improve its balance sheet.

JPMorgan Chase & Co.(NYSE:JPM), the largest bank in the U.S. in terms of assets, has posted spectacular profits in the last quarter. On Friday, it said that its earnings for common shareholders were $5.3 billion, up 36 percent from the corresponding quarter last year. These earnings take into account the money to be paid to preferred shareholders. If this expense was excluded, the net income would have been even higher, $5.7 billion to be exact.

Earnings were $1.40 per share, much higher than analysts’ expectations of $1.21. Revenues rose by 6 percent to $25.1 billion against expectations of $24.4 billion.

The JP Morgan stock fell 57 cents and was trading at $41.52 recently.

In June this year, the stock had touched a low of $31 after the company disclosed a trading loss of $6 billion.

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