If you’re in the stock FTWR, you’ve suffered the past few years. Now, it looks like those who have suffered have decided they don’t want to take it anymore. FiberTower Corporation is a provider of facilities-based backhaul services to wireless carriers – an industry that would seem ripe to make money, with the surge in cell phone use and the cell phone becoming a mini-computer, data needs to be backhauled.
The earnings report was poor for FTWR and so the stock dropped over 11%. But that’s on top of the $1 drop it’s taken the past month. It’s gone from around $4 to around $3 and now down to $2.50. It looks like it could be cut in half. And this isn’t the first time this has happened. No, a few years ago, around the financial melt down, Fibertower went all the way down to .10 a share and then slowly rose up to $3. Yes, that’s quite a jump. What happened next? The stock did a reverse split and shot down to .40 a share. It’s no wonder investors are bailing out of the stock and have just had enough.
Here’s a classic comment from the Yahoo Finance message boards from a Fibertower shareholder:
The message subject line reads: $13000 loss
First comment: Thank you Fibertower for my stupidity!
Second comment: Hey man… I feel for you I lost a significant amount. I’m too embarassed to say how much but I think you did the right thing. I think no guidance for 2011 tells everything.
Caveat: We don’t take pleasure in posting something about someone else’s pain. We’ve been there. Perhaps not in such a dire situation, but we are sympathetic to the trade that goes bad. However, as they say, there’s always someone else on the other side of the trade. And I’m guessing they’re pretty happy in a lot of these situations.