(NEW YORK)–Hammer Fiber Optic Holdings Corp (OTCMKTS: HMMR) rallies on speculation their partnership with Go Long Wireless could make them an attractive ‘wireless fiber’ buyout target for carriers looking to build out their 5G networks.
Hammer Fiber recently announced it has teamed up with Go Long Wireless, Ltd. (GLW), a company based in Sarasota Florida that holds 12 GHz Multichannel Video Distribution and Data Service (MVDDS) spectrum in 49 U.S. markets, reaching a population in excess of 29 million. This new partnership will enable Hammer Fiber to expand its successful business model of delivering a bundle of high speed broadband, TV, and VoIP phone service to these additional 49 markets, including underserved rural communities.
Bruce Fox, the CEO of Go Long Wireless commented, “With our licensed footprint covering over a third of the U.S. landmass, Hammer Fiber is the perfect partner to leverage our expansive spectrum holdings for the delivery of broadband services that both rural and urban consumers demand and deserve. They have the only technology that can currently exploit our spectrum’s extensive capacity to its full potential.”
Potential Buyout Target
Verizon recently announced the acquisition of $225 million of certain fiber-network assets of WideOpenWest that are currently serving the Chicago market.
This acquisition is another indicator of Verizon’s commitment to invest in high-capacity, multiuse dense metro fiber assets, and the high multiple paid confirms the value they places on fiber ahead of its 5G rollout. On its recent earnings call, Chief Financial Officer Matt Ellis stated Verizon will be adding capacity through a combination of “buying and building fiber,” as well as leasing fiber assets that already exist. We also think the WOW transaction suggests Verizon could be in acquisition mode for more fiber assets.
Straight Path Acquisition
Another example is Straight Path Communications, Inc. (NYSEMKT:STRP), an owner of much sought after bandwidth spectrum. STRP held a large inventory of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications that would give a new owner an advantage in 5G development. The desire for STRP assets set off a bidding war between Verizon and AT&T that sent Straight Path stock from around $35 a share to high of $230 in just one month.
Verizon and AT&T were seeking to gain an edge in the race to develop out a fifth-generation network (5G) that would offer faster downloads and boost internet-reliant products such as self-driving cars. Verizon won out the bidding war announcing in May 2017 that they would acquire Straight Path for $184 a share in an all-stock transaction, reflecting an enterprise value of approximately $3.1 billion.
The ability for Hammer Fiber (HMMR) and Go Long Wireless to deliver broadband services in what they call the ‘last mile’ to more rural areas without the need to lay expensive optic fiber in the ground could make this play an even more attractive target for larger carriers looking to build out their own 5G network from the urban to more rural areas rapidly.
Hammer Fiber was last traded at around $25 per share under the ticker symbol “HMMR”.
About Hammer Fiber
Hammer Fiber Optic Holdings Corp. (OTCQB: HMMR) is a telecommunications company investing in the future of wireless technology whose holdings include Hammer Fiber Optic Investments, Ltd. D/B/A Hammer Fiber, a New Jersey-based Internet Service Provider (ISP) that offers internet, voice, video and data services in New Jersey, as well as carrier services in Philadelphia and New York. Hammer Fiber serves residential and small business markets with high capacity broadband, voice and video through both direct fiber as well as its wireless fiber platform, Hammer Wireless® AIR technology. For more information visit http://www.hammerfiber.com
About Go Long Wireless
Go Long Wireless, LTD is a Florida based wireless spectrum holding company with an extensive spectrum portfolio designed to enable ultra-broadband services to rural and urban communities across the U.S. For more information please visit www.golongwireless.com
This is NOT a solicitation to Buy or Sell any security, but rather is for informational purposes only. Content contained herein includes facts, views, opinions and recommendations of individuals and organizations deemed of interest. Wall Street Newscast (“WSNC”) does not guarantee the accuracy, completeness or timeliness of, or otherwise endorse these views, opinions or recommendations, or give investment advice. WSNC, its affiliates, or directors, may or may not hold a position in the above security from time to time, and investors are encourage to consider this as a possible conflict of interest when reviewing this information. In Compliance with SEC Rule 17B Wall Street Newscast was compensated one thousand two hundred dollars for ongoing media advisory services, and thus should be considered a possible conflict of interest when reviewing this report and information. WSNC, or its affiliates, may hold a position in above securities from time to time, and thus should be considered a possible conflict of interest when reviewing this report and information. These investments may involve a high degree of risk, thus investors are highly encouraged to consult with a financial advisor before any and all investments.
Safe Harbor Statements:
This website includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
Small and Micro cap, or ‘penny stocks’, involve a high degree of risk, and we highly encourage investors to consult with a financial advisor before making any and all investment decisions when investing in these type of securities.
- Orbsat (OSAT) Potential for Global IoT Data Provider Through Satellite Network - November 20, 2019
- Alpine 4 (ALPP) Stock Pulls Back After Major Run in Share Price - November 6, 2019
- GTX Corp (GTXO) Stock Offers Upside Valuation Potential as Wearable IoT Play - October 31, 2019
- Cannabis Stocks get Upgrade at Oversold Levels - October 10, 2019
- FDA Guidance on CBD Infused Products May Signal Bottom for Stock Sector - August 17, 2019
- Vectorspace AI (VXV) and ESTC Discuss Visualizing Alpha Utilizing Datasets and Canvas - August 8, 2019
- Vectorspace (VXV) Crypto Coin Big Uses for Quant Hedge Funds - July 1, 2019
- BioHemp (BKIT) Added to Watch List as CBD Distribution Play - June 28, 2019
- Hammer Fiber (HMMR) Moves Towards Profit in Earnings Report - June 27, 2019
- Maybe It’s Time to Automate Politicians to History Bin Using AI - April 21, 2019