Stay Away From Clearwire (CLWR)

Clearwire Corporation CLWR reported horrible earnings and is cutting back on employees to save cash, as it tried to get new financing to keep expanding its network. In addition this, there were several downgrades to the company, as it tries to save up $400 million in new funding. Wells Fargo, Mizuho, and RBC all downgraded the stock on this concern. It would be wise for investors to steer clear of Clearwire until it raises the money for its network expansion. It is never a good idea to invest in a company that is looking to cut capital expenditures faster than you can blink. Disclosure: no position