StraightPath (STRP) fans haven't recognized it yet, but the Federal Communications Commission Chairman dropped the "C" bomb right on top of StraightPath.
"C" as in competition. Chairman Tom Wheeler told members of the National Press Club that America needs to "open up vast amounts of spectrum for 5G applications."
But Mr. Wheeler's interest in kickstarting the 5G frontier actually rips away some of StraightPath's mojo.
"…competition in the supply of backhaul remains limited and that can translate into higher prices for wireless networks and higher prices for consumers," he said.
So the big picture is that plans are to increase competition for licensed and unlicensed network providers.
Additionally, 5G networks won't even be available until 2020!
Enthusiasm over the possibilities of 5G high frequency spectrum has irrationally stretched StraightPath's stock price.
Now, the latest 5G excitement is actually a huge disappointment to the company. When investors realize this, we believe the price will quickly reverse.
Some key issues facing StraightPath:
*The company has a history of poor-to-no earnings.