ATEX

Please note, on 6/14/19 pdvWireless, Inc. (PDVW) changed its ticker to ATEX. The content of this idea will make reference to the original ticker symbol.

Publicly traded companies mentioned herein: pdvWireless Inc (PDVW), Sprint Corp (S)

Highlights:

The presenter is long shares of pdvWireless Inc (PDVW), the communications company founded by Brian McAuley and Morgan O’Brien. The pair had previously founded FleetCall, which became Nextel and was eventually sold to Sprint Corp (S). McAuley and O’Brien bought the spectrum back from S in 2015 and have since been petitioning the FCC to reclassify the spectrum from a dispatch system to an LTE, “full-blown 5G network.” The argument presented to the FCC was that PDVW will be an ideal network for utilities and other high priority industries. The proposal has recently received increased support, and in late February the FCC issued a draft of a notice of the proposed rule change. The FCC will discuss the draft on March 15th and the presenter expects a one- or two-month comment period, but ultimately believes it will become law sometime this year. This ruling would unlock “interesting use cases” and a good long-term story, leading the presenter to see upside to ~$150 per share from its current ~$39 trading price.