Clearwire Corp (CLWR): Today's Featured Telecommunications Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Clearwire ( CLWR) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 1.0%. By the end of trading, Clearwire fell $0.07 (-1.5%) to $4.56 on light volume. Throughout the day, 8,241,795 shares of Clearwire exchanged hands as compared to its average daily volume of 11,962,200 shares. The stock ranged in price between $4.49-$4.65 after having opened the day at $4.52 as compared to the previous trading day's close of $4.63. Other companies within the Telecommunications industry that declined today were: Linktone ( LTON), down 9.9%, Trunkbow International Holdings ( TBOW), down 6.8%, DragonWave ( DRWI), down 6.5% and InfoSonics Corporation ( IFON), down 4.5%.
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Clearwire Corporation, through its subsidiaries, provides fourth generation (4G) wireless broadband services in the United States. Clearwire has a market cap of $3.2 billion and is part of the technology sector. Shares are up 60.2% year to date as of the close of trading on Monday. Currently there are no analysts that rate Clearwire a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Clearwire as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and generally high debt management risk.

On the positive front, Net Element International ( NETE), down 16.9%, Maxcom Telecomunicaciones S.A.B. de C.V ( MXT), down 13.1%, RIT Technologies ( RITT), down 12.4% and Alvarion ( ALVR), down 11.8% , were all gainers within the telecommunications industry with Nokia Oyj ( NOK) being today's featured telecommunications industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).

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