Aug. 9 (Bloomberg) -- Leap Wireless International Inc. rallied 12 percent in New York today, the biggest one-day gain since Nov. 30, as the stock recovered from a post-earnings selloff that dragged it down 20 percent over two days.
The shares climbed to $4.96 at the close in New York, paring their year-to-date decline to 47 percent. The stock had fallen over the previous two days, following the loss of almost 300,000 subscribers in the second quarter.
Leap, a pay-as-you-go wireless carrier, signaled this week that the company could be sold, saying it was evaluating “all options” to squeeze more value from its assets. Leap’s wireless spectrum alone is worth $3 billion, Chief Financial Officer Jerry Elliott said on a conference call. Leap’s market value is $404.8 million.
Michael Mahoney, a senior managing director at Falcon Point Capital LLC in San Francisco, said shareholders would be well served if San Diego-based Leap gets a 15 percent premium on its enterprise value -- between $3.5 billion and $4 billion for the spectrum and the business.
NII Holdings Inc., another wireless carrier that saw its stock battered after disappointing earnings this week, rose today as well. Shares of the Reston, Virginia-based company climbed as much as 13 percent to $7. The stock was down 71 percent this year through yesterday.
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