Could Straight Path Communications Inc. Cl B (NYSE MKT:STRP) face pressure ahead?


At the end of the most recent quarter, Straight Path Communications Inc. Cl B (NYSE MKT:STRP)‘s balance sheet showed total assets worth $9.92M. Compared to the past period, the newly reported debt increased/decreased by growing.

Straight Path Communications Inc. Cl B?s total liabilities exiting the latest quarter stood at $24.08M.

Recently, Straight Path Communications Inc. (NYSEMKT:STRP) announced that it will sign a definitive merger agreement under which Verizon Communications Inc. (“Verizon”) (NASDAQ:VZ) will acquire Straight Path for $184.00 per share (reflecting an enterprise value of approximately $3.1 billion) in an all-stock transaction that is intended to qualify as a tax-free reorganization. Concurrently therewith, Verizon will pay on behalf of Straight Path a termination fee of $38 million to AT&T. The transaction has been approved by the boards of directors of both Straight Path and Verizon.

Let?s look into the technical of the stock

The Barchart Technical Opinion rating is a 96% Buy with a Average short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend. The market is approaching overbought territory. Be watchful of a trend reversal.

The assets that the company listed at the end of the most recent quarter included cash balance of 7.84M%. Net operating cash from the latest quarter was $(1.73M), leading to free cash flow of $(1.73M). Compared to the past period, net change in case came to $(1.72M).

The cash that Straight Path Communications Inc. Cl B generated in the latest quarter stemmed from sales of 165,000%, which increased 0.32% from a year-ago period.

It cost Straight Path Communications Inc. Cl B some $26,000 to generate the sales of 165,000% reported in the latest quarter, with that being the cost of sales. After factoring in the cost of sales in the income calculations, Straight Path Communications Inc. Cl B emerged with gross income of $139,000.

After also taking into account other operating expenses, the company ended up with a net income figure that when it divided with the number of outstanding shares it ended up with EPS (earnings per share) of $(2.10). For perspective on how Straight Path Communications Inc. Cl B arrived at the EPS figure, investors should know that the company finished the latest quarter with diluted outstanding shares of 12.13M.

What’s in the offing in terms of EPS for the next quarter? Wall Street analysts on the average say investors should expect from Straight Path Communications Inc. Cl B EPS of $-0.27 in the next quarter.

In addition to predicting the next quarter?s EPS, analysts have also weighed in on the stock of Straight Path Communications Inc. Cl B regarding whether investors should view it as a BUY, SELL or HOLD. Some 1 analysts have commented on the stock so far, giving it an average analyst recommendation of Buy.

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