Follow posts
I posted this back on March 7th.
"Longer term Sprint could be in for a major rally. Part of the thing people forget is that Sprint has a lot of customers (far more than T-Mobile and T-Mobile is actually on a sounder financial footing than Sprint) and thus potential to turn things around as a result of its total revenues being pretty solid.
Sprints biggest problem is two fold.
1. They have a TON OF DEBT. No getting around that, and thats the biggest reason they are so cheap.
2. They are running two cellular networks, CDMA and iDEN (The old NT). Running one network is incredibly expensive, running two is terribly so. I believe Sprint hasn't turned a profit since they purchased Nextel's iDEN network.
The reason I mentioned a potential long term rally is as follows.
While Sprint is crippled with debt and it's financials wont get any better in the near term as a result of running two networks and paying huge subs for the iPhone, Sprint is in the midst of a network modernization project.
The network modernization project in the near term will cause more debt and could sink them, however if they survive it, they will have shut down iDEN by the end of 2013, built out a more advanced LTE network and cut costs dramatically by removing the iDEN and implementing LTE which is supposedly (according to Verizon) 4x more efficient.
The huge expenses of the modernization and of keeping CLWR afloat (necessary for their modernization project) and the huge cost of the iPhone could sink them.
If they come out of the modernization project however they may be in position to deliver their best results in 7 years. Sprint is a huge risk, but they do have a shot of delivering decent returns in the long term if they can survive the next 3-4 years.
Still its a long term, high risk, high reward type deal."
Sprint anyone?
Displaying all 7 forum posts
Until this last quarter everyone thought sprint was no good. Including me.They had a lot of debt that they couldn't pay, they couldn't get the any growth, they just couldn't get it together. It kinda looked like they could never compete with verizon or at&t. They had no dividend. Why the heck would anyone want to buy sprint? But after this quarter it seems they have really turned things around big! It was a quarter that really blew everyone away. They increased there forecast, aggressively expanding 4g and getting rid of the nextel network, customer base is growing, customer service rating is at an all time high. It looks like all of the investing and hard work they did has finally turned things around. From what I can see the future looks really good for sprint. Could this stock go back to its all time high of $26? If so what a return that would be! I don't own any non dividend paying stocks but I bought some sprint today. Anyone else have thoughts on sprint?
Sprint has always been thought to be the underog.
I remember 2 decades ago, before cell phones, when MCI & ATT were constantly in the news for overzealous business practices - lying and misleading customers into long distance plans to be boost short term earnings, Sprint always avoided those schemes.
Right now, Sprint's advantage is it's unlimited data, along with it's notoriety for not putting hard to find clauses into user contracts (no hidden fee's).
They sacrifice short term margins that come at the expense of the consumer to win in the end.
I remember 2 decades ago, before cell phones, when MCI & ATT were constantly in the news for overzealous business practices - lying and misleading customers into long distance plans to be boost short term earnings, Sprint always avoided those schemes.
Right now, Sprint's advantage is it's unlimited data, along with it's notoriety for not putting hard to find clauses into user contracts (no hidden fee's).
They sacrifice short term margins that come at the expense of the consumer to win in the end.
I picked some up today myself. With all of the hype and Cramer's huge support I feel it could be a great comeback and I couldn't find any reason why it shouldn't be.
Actually several months back I posted something in a Sprint topic talking about how they were a high risk high reward stock. Pretty good couple of weeks. It's just to bad I didn't have much money to invest in them. I have a stake but its very small.guitarmanken said: Until this last quarter everyone thought sprint was no good. Including me.They had a lot of debt that they couldn't pay, they couldn't get the any growth, they just couldn't get it together. It kinda looked like they could never compete with verizon or at&t. They had no dividend. Why the heck would anyone want to buy sprint? But after this quarter it seems they have really turned things around big! It was a quarter that really blew everyone away. They increased there forecast, aggressively expanding 4g and getting rid of the nextel network, customer base is growing, customer service rating is at an all time high. It looks like all of the investing and hard work they did has finally turned things around. From what I can see the future looks really good for sprint. Could this stock go back to its all time high of $26? If so what a return that would be! I don't own any non dividend paying stocks but I bought some sprint today. Anyone else have thoughts on sprint?
I posted this back on March 7th.
"Longer term Sprint could be in for a major rally. Part of the thing people forget is that Sprint has a lot of customers (far more than T-Mobile and T-Mobile is actually on a sounder financial footing than Sprint) and thus potential to turn things around as a result of its total revenues being pretty solid.
Sprints biggest problem is two fold.
1. They have a TON OF DEBT. No getting around that, and thats the biggest reason they are so cheap.
2. They are running two cellular networks, CDMA and iDEN (The old NT). Running one network is incredibly expensive, running two is terribly so. I believe Sprint hasn't turned a profit since they purchased Nextel's iDEN network.
The reason I mentioned a potential long term rally is as follows.
While Sprint is crippled with debt and it's financials wont get any better in the near term as a result of running two networks and paying huge subs for the iPhone, Sprint is in the midst of a network modernization project.
The network modernization project in the near term will cause more debt and could sink them, however if they survive it, they will have shut down iDEN by the end of 2013, built out a more advanced LTE network and cut costs dramatically by removing the iDEN and implementing LTE which is supposedly (according to Verizon) 4x more efficient.
The huge expenses of the modernization and of keeping CLWR afloat (necessary for their modernization project) and the huge cost of the iPhone could sink them.
If they come out of the modernization project however they may be in position to deliver their best results in 7 years. Sprint is a huge risk, but they do have a shot of delivering decent returns in the long term if they can survive the next 3-4 years.
Still its a long term, high risk, high reward type deal."
I started a position today for a trade on this down day - looks like it may base before continuing upward.
Would be interesting for it to fill the 7/27/11 gap.
Possible cup forming - I plan to sell half of position at $5 if it gets that high.
stop loss at 3.90
Would be interesting for it to fill the 7/27/11 gap.
Possible cup forming - I plan to sell half of position at $5 if it gets that high.
stop loss at 3.90
Are people getting in because they think that Sprint will be picking up people leaving Verizon and ATT? Or because more people are moving to prepaid?
After my experience as a Nextel customer who tried to switch to Sprint but got lost in the maze, I wrote them off long ago. Surprised they're still around.
Displaying all 7 forum posts
You must Log In to post to this forum.
Not a member? Register Now to …
- See what other traders are doing
- Make your own trades public
- Share your thoughts on a trade
- Join or start a group
- Connect with like-minded traders
