For traders looking for massively oversold, small float, deeply distressed opportunities, Hammer Fiber Optics Holdings Corp (OTCMKTS: HMMR) could be of major interest right now. Volume is kicking up a big way as the stock pivots off its recent lows following a cratering process on the chart over the past 6 months. But a new bid appears to be at work, coming in concert with the company’s announcement this week that it has completed its acquisition of spectrum licensing in the 3.5 GHz band from 3.650 GHz 3.700 GHz.
According to the release, “the spectrum was purchased earlier this year, pending transfer with the FCC, which is now complete. The 3.5 GHz Band spectrum license applies nationwide and affords Hammer Communications the ability to make use of the Band with protection from signal interference. Spectrum in the 3.5 GHz band is recognized widely as suitable for both mobile and fixed wireless broadband. As other telecoms and mobile carriers have announced their plans to develop networks operating in the 3.5 GHz CBRS band, Hammer Communications Wireless AIR technology is already poised to take advantage of the capacity and flexibility of these assets.”
Hammer Fiber Optics Holdings Corp (OTCMKTS: HMMR) has been established to house investments in high capacity broadband infrastructure, aimed at providing choice to disgruntled poorly served subscribers. Hammer Fiber has introduced a technology built on a hybrid architecture between fiber optic long haul infrastructure and high capacity wireless last mile innovation.
This hybrid solution allows high capacity broadband to be delivered through the airwaves to every home and business in sight of the many towers and high points Hammer plans to deploy across cities and towns throughout the United States.
Hammer’s solution provides a platform to “cut the cord” and present alternatives to consumers allowing them to choose and use affordable multi-media content when and how they wish to. Hammer will focus investment in this market segment and promote growth through organic and acquisition strategies.
According to company materials, “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 Communications, aNew Jersey-based Internet Service Provider (ISP) that offers internet, voice, video and data services inNew Jersey, as well as carrier services inPhiladelphiaandNew 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.”
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The chart shows 47% in gains during the past week in the stock, but this action is running counter to the larger trend in the name as we noted above. What’s more, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed a bit over 990% above its longer run average levels. It pays to take note of this fact given the stock’s very limited trading float of 9.6 million shares.
“This acquisition is a great opportunity for Hammer to increase the capabilities of our wireless platform even further, maximize efficiency and showcase what the technology is capable of,” said Mark Stogdill, Founder and CEO of Hammer Communications. “We are always looking for more opportunities to expand our access to spectrum bands, and expand our platform. Spectrum is a commodity that has seen an increase in value with the shift to a wireless focus and we are excited to be at the front of it.”
At this time, carrying a capital value in the market of $86.5M, HMMR has a chunk ($108K) of cash on the books, which is balanced by about $3.6M in total current liabilities. One should also note that debt has been growing over recent quarters. HMMR is pulling in trailing 12-month revenues of $140K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 38.6%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $HMMR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $HMMR, either long or short, and we have not been compensated for this article.