How can Straight Path Communications Inc. Cl B (NYSE MKT:STRP) burn your fingers?


How far has the stock of Straight Path Communications Inc. (NYSEMKT:STRP) come to trade at their current price of $230.68, which gives it a market cap of $2.75B.

To trade now at $230.68, the stock has emerged from a 52-week low of $1431.74%. But the current price also compares with the 52-week peak of $-2.20%.

The Barchart Technical Opinion rating is a 100% Buy with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is in the Top 1%. Long term indicators fully support a continuation of the trend. The market is in highly overbought territory. Beware of a trend reversal.

Recently, Straight Path Communications Inc. (NYSEMKT:STRP) announced that the Straight Path Board of Directors (the “Straight Path Board”) determined that a revised offer from a multi-national telecommunications company (the “Bidder”) to acquire 100% of the issued and outstanding shares of Straight Path for $184.00 per share (reflecting an enterprise value of approximately $3.1 billion), which will be paid in Bidder stock in an all-stock transaction constitutes a “Superior Proposal” as defined in Straight Path’s previously announced definitive agreement and plan of merger with AT&T Inc. (“AT&T”) (NYSE: T) and Switchback Merger Sub Inc., dated as of April 9, 2017 (the “AT&T Merger Agreement”). The Bidder previously submitted an unsolicited offer on May 1, 2017 to acquire 100% of the issued and outstanding shares of Straight Path for $135.96 per share (reflecting an enterprise value of $2.3 billion), which has been superseded by the revised offer announced today.

The stock?s journey to the current price can be understood by looking at its performance from the last week down to the 12 months. The stock’s weekly performance stands at 83.34% and its monthly performance is 532.35%. For the quarter, the stock has moved 583.70% and for half-year it has shifted 920.71%. So far this year the stock has moved 468.32% and for the last 12 months it has moved 580.27%.

Studying simple moving averages also tell the stock’s journey thus far. The 20-Day Simple Moving Average is $74.53%, the 50-Day Simple Moving Average is $210.48%, while the 200-Day Simple Moving Average is $486.95%.

In terms of financial performance, Straight Path Communications Inc. reported gross margin of 69.20%% for the trailing 12 months.

Straight Path Communications Inc.’s P/Cash for the most recent quarter is 352.53. For perspective, payout ratio provides insight into a company’s ability to sustain dividend distributions. As such, a lower payout ratio is preferred to a higher payout ratio is it implies a company is preserving more cash for investments and other needs that it releases to shareholders.

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