Major fund owner adds to stake.
Last week, Owl Creek Asset Management bought over 428,000 shares of pdvWireless Inc (ATEX). This represented a 16 percent increase in the fund’s holdings and brings their total share ownership up to over 3,076,000.
- This Industry is Exploding Faster Than It Has in 15 Years
1,700 people are moving to Central Florida every week.
And the numbers are only increasing as more and more people are banking the end of the pandemic drawing near.
And one company, which just received critical approval to list on a prestigious public exchange, could be on the verge of going on a huge run.
The fund, with over $2 billion in assets under management, owns over 10 percent of shares in the company.
pdvWireless provides network and mobile communication solutions to infrastructure and enterprise customers, with a cloud-based mobile resource management solution and push-to-talk mobile communication services, and provides nationwide two-way digital communication services. The company was renamed from Pacific DataVision in 2015.
Action to take: We see little reason to follow insiders in at current prices and valuation. The company is currently not profitable, and both earnings and revenue have declined by double-digits in the past year. Yet, at the same time, shares are up nearly 68 percent in the past year against a rise in the S&P 500 of just 6 percent. There are better opportunities to chase here.
While the company is debt free, and has over $5 per share in cash, that isn’t enough of a cushion for investors here. Shares would look more attractive closer to the 52-week low of $24, so look for an opportunity to buy shares if they slip to $30 or less.