General Investing Forum

[travismheim]

I have a bit of money I got from my father in back child support payments he owed for several years. I had to pressure my mother for a very long time to try collecting on it, which she finally did last year. I have enough of it to purchase 10,000 shares of Sprint stock at $2.00 each.

 

However, I know very little of the stock market and how things work, so please no one think this to be a dumb question for me to ask, as I'm just trying to learn some things about it, as I know I need to try to make money for myself any way I can without physical assertion, and I'm unable to get a job because of my extreme physical limitations.

 

So, the question is, say I purchase stock which devalues a week later. I know then that the stock I own is worth less at that point than at the time I purchased it. However, say that another week passes and the stock price rises above the price I purchased it at. In that case, does the stock I own goes up in value to the new higher stock price, or is the stock I own still stuck at the lower devalued rate?

 

I'm figuring that the value of the stock I'd have in the scenario would match the current stock price, though I wanted to ask anyways to make sure. If I'm correct about that, and I owned 10,000 shares at the original rate of $2.00 each, and say it eventually increased to around $40.00 per share, in average, how wealthy would that make me?

Multiply the stock price by how many shares you own and that's how much money you would potentially have if you sold it all at that current price. Your portfolio worth will go up and down with the stock market. I'm sure you know, but don't throw all of your eggs in one basket (don't use all of your money to only purchase stock in one company).

[trojanman05]

Multiply the stock price by how many shares you own and that's how much money you would potentially have if you sold it all at that current price. Your portfolio worth will go up and down with the stock market. I'm sure you know, but don't throw all of your eggs in one basket (don't use all of your money to only purchase stock in one company).

 

 

I have a bit of money I got from my father in back child support payments he owed for several years. I had to pressure my mother for a very long time to try collecting on it, which she finally did last year. I have enough of it to purchase 10,000 shares of Sprint stock at $2.00 each.

 

However, I know very little of the stock market and how things work, so please no one think this to be a dumb question for me to ask, as I'm just trying to learn some things about it, as I know I need to try to make money for myself any way I can without physical assertion, and I'm unable to get a job because of my extreme physical limitations.

 

So, the question is, say I purchase stock which devalues a week later. I know then that the stock I own is worth less at that point than at the time I purchased it. However, say that another week passes and the stock price rises above the price I purchased it at. In that case, does the stock I own goes up in value to the new higher stock price, or is the stock I own still stuck at the lower devalued rate?

 

I'm figuring that the value of the stock I'd have in the scenario would match the current stock price, though I wanted to ask anyways to make sure. If I'm correct about that, and I owned 10,000 shares at the original rate of $2.00 each, and say it eventually increased to around $40.00 per share, in average, how wealthy would that make me?

 

I 100% agree with travismheim on diversifying your portfolio. I definitely would not put all of your available cash into S stock. For one (and this is my personal opinion), it's still going to be awhile until we see significant gains. And second, Sprint doesn't offer a dividend. If you don't know, a dividend is cash given back to stock holders (usually quarterly), and is generally a good way to beat interest rates and offset any dips in the stock market (long term). It's paid out per share, so let's say you own 50 shares of a particular stock that pays a .50 cent dividend every quarter, you would get $25 every quarter.

 

Some well known blue chip dividend stocks include Coca-Cola (KO), Pepsi (PEP), Intel (INTC), Procter & Gamble (PG), General Electric (GE), Disney (DIS), Colgate (CL), Wal-Mart (WMT), 3M (MMM) and IBM (IBM). There are tons of others and these stocks are historically profitable and reliable in both good times and bad and have seen an upward trend long-term, in addition to paying out a dividend to it's stock holders (and often times increasing that dividend over time). FYI, Sprint's competitors Verizon (VZ) and AT&T (T) both pay dividends...no harm in investing in them even though you're on Sprint 

 

I would definitely look into some dividend stocks, especially with longstanding companies. Prices of these stocks won't be as cheap as Sprint (and for good reason), but the overall long term return will be a lot greater. In my portfolio, I do own some Sprint, but I own more dividend paying stocks from all sectors of the economy to diversify my investing strategy. Just do your research and consult with others...just don't expect to become wealthy right away.

[bucdenny]

Sprint is at 3.15 this morning.

[luvixuha]

Sprint continues it's march towards penny stock.

 

http://www.google.com/finance?q=NYSE:S

[GoBigRed79]

Wonder it there will be a point the stock gets cheep enough that SoftBank just buys the rest of it up.

 

 

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[mnjeepmale]

The stock continues to keep falling. 

[Ascertion]

Damn...definitely a long-term stock...(5+ years) looks like.

 

Sent from my M8

[Rawvega]

They're taking it on the chin this time due to some fallout from that Chrysler UConnect hack.

[luvixuha]

Damn...definitely a long-term stock...(5+ years) looks like.

 

Sent from my M8

Sunk cost fallacy. Better off taking the capital loss and investing in a more worthwhile stock.

[dedub]

stock has no real value while you're holding it, unless it pays dividends, which sprint does not.

 

Stock value only matters, when you buy it, and when you sell it.

 

So if you bought 10k shares @ $2 it cost you $20k (plus any trade fees).

 

If sprint ever rises to $20, and you sell them for $20, then your take out is 200k (minus the original 20k and any trade fees giving ~$180k profit over your original 20k).

 

Of course, it could take a long time (or never) for sprint to reach $20.

 

In the short term, it could drop down to $1 or less, and then the value of your stock would likewise deflate.

 

Oh also you pay taxes on your profit, how much depends on how long you've held the stock, long term vs short term capital gains.

[sbolen]

Wonder it there will be a point the stock gets cheep enough that SoftBank just buys the rest of it up.

 

 

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If I had that kind of cash, I would. No doubt.

[JimBob]

Wonder it there will be a point the stock gets cheep enough that SoftBank just buys the rest of it up.

SoftBank bought 78% of Sprint in 2013 for $21.6 billion.  Sprint's entire market cap is now $13.6 billion.  

[Wiley_11]

They're taking it on the chin this time due to some fallout from that Chrysler UConnect hack.

http://www.fool.com/investing/general/2015/07/27/why-sprint-corporation-dropped-as-much-as-10-today.aspx

[JimBob]

Anybody here own nTelos (NTLS)?  I am interested in their focus on West Virginia and western Virginia, long-term wholesale agreement with Sprint, and possible buyout in the future.

Missed the boat on this one.  Up 20% this morning.

[mittenmitten]

S is up again this morning, I hope it doesn't go too high, I still want to buy some at a discount XD

 

I hate to root against it...but I hope it plummets to $3

[luvixuha]

Missed the boat on this one.  Up 20% this morning.

Dead cat bounce.

[S4GRU]

A lot of stock speculators know Sprint stock is volatile and is easy to manipulate. I fully expect some more analysts to pile on and drive down the price further and then try to buy cheap. And laugh when they double their money in months. This is all a game, at the expense of all the little guys.

 

I kind of hope SoftBank just sweeps in and starts buying open shares on the market.

 

Using Nexus 6 on Tapatalk

[always_learner]

Dead cat bounce.

What do you think next week's earnings report will do to Sprint's stock price?

[luvixuha]

What do you think next week's earnings report will do to Sprint's stock price?

My brain says Sprint will hit their consensus earnings (which isn't good btw), but that it's already been priced into the cost of the stock at this point.

 

My gut says that they'll miss earnings by a few cents, and the news will be coupled with Sprint taking the #4 spot in subscribers which won't elicit confidence, and the stock will show continued weakness over the next quarter.

Edited July 28, 2015 by luvixuha

[Arysyn]

Thank you to everyone who gave me advice on this issue. I'll give some background into what I'm thinking with this now, and what I need to do from here.

 

My spending on anything is very strict, as I don't control my finances, my mother does. I have to ask her for usage of my money, which gets frustrating. However, it is a tradeoff I deal with for her help managing my overall living needs with my bad health. Although, I'm hoping for some opportunity to free some of the financial burden, which is why I'm looking into the Sprint stock idea. If it looks good, and I could convince my mother of this, then perhaps she'd invest into this (with my money, of course)

 

Right now, she and I are preparing to move into the townhouse my aunt lives at, which my grandmother owned until recently when she passed away. Now, my mother and my aunt both own it equally. Some of the money of mine from the back support pay she got from my father will have to go into renovations for my accessibility needs there. However, I've been hoping to use some of that money, along with what savings there will be from living there, not having to pay so much in rent, for investing.

 

I'm seeing this as my best way at getting financial security for the future. There are going to be some hefty expenses, which this will be a way of covering those when they are most needed. I'm guessing at a few years from now, so I'll need to learn and start planning this. I'm grateful for the information here though, and I'm at least glad to know that when money frees up a bit next year after the move, aside from renovation and hopefully some investment spending, I'll be able to donate more to S4GRU and perhaps move up to Honored Premier in the process.

[EvanA]

I'm seeing overall positive news articles regarding Sprint's Q1 performance. Seems like investors are satisfied with Sprint's turnaround progress

[JimBob]

I'm seeing overall positive news articles regarding Sprint's Q1 performance. Seems like investors are satisfied with Sprint's turnaround progress

I will believe investors are satisfied when the stock price returns to at least its year-ago price of $7.  Right now, it is still near $3.

[Fraydog]

If SoftBank just bought out the other 19% they don't own, would they just call it SoftBank US at that point? 

[Arysyn]

If SoftBank just bought out the other 19% they don't own, would they just call it SoftBank US at that point?

I think both are very good ideas. If they owned all of Sprint and changed the name, along with the network improvements, it would be more difficult for people to use the same negative perception of the company as many view Sprint, unfortunately.

 

However, someone here on S4GRU mentioned a very good idea of having two brands, one being Sprint, the other being SoftbankUSA. I like that idea also, if it meant eliminating the Virgin and Boost brands, or possibly just the Virgin brand, calling the other one Sprint Boost. That could be the cheaper brand, while Softbank USA as the main brand.

 

Another idea I had, was for Softbank to do something similar to what Comcast did with Xfinity, by creating a name that represents only their mobile unit, which they could name both the U.S. company and the Japan company the same. If Sprint does manage to change its reputation, something that is more difficult than just improving the network, then perhaps Sprint Japan might work, as the Yahoo Japan works very well for Yahoo, even better than in the U.S. I think the same might very well work for Sprint in Japan, if Softbank decided to go that route.

[Fraydog]

SoftBank owning 100% of Sprint would take it off the US markets. That would be wonderful. Then SoftBank could go to work really making more drastic changes to the core business.

 

 

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