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centermedic

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Jones Member Level: 3G EVDO

Jones

Posted
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I read a seeking alpha editorial article that said Sprint could hugely reduce it's interest expense by taking out more spectrum backed, investment grade notes. 

If that's the case why hasn't Tarek done that already? Was this first spectrum backed funding a proof of concept and then they'll be doing it again?

http://seekingalpha.com/article/4015759-sprint-even-valuable-thought

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DanielB Member Level: 3G EVDO

DanielB

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Yes, but why now this sudden price surge; indeed makes me tempted to sell.   :o

 

The election. The market is expecting a "conservative" (whatever that means anymore) government to be more open to large-scale M&A activity. That's why T-Mobile is also up a bit today.

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JimBob Member Level: eHRPD

JimBob

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The election. The market is expecting a "conservative" (whatever that means anymore) government to be more open to large-scale M&A activity. That's why T-Mobile is also up a bit today.

Sprint stock rally from Trump election is a bit too thin hype for me.  I just sold off 25% of my Sprint position at $7.28, offloading way more shares than I bought last week.

 

Also, we are already seeing interest rates (bonds) jump significantly the past two days.  If the Fed increases rates next month along with Trump's anti-Fed rhetoric-backed policies, it will be much harder for debt-straddled companies like Sprint to refinance.

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JimBob Member Level: eHRPD

JimBob

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Isn't Sprint's whole strategy at this point revolving around paying off 2B worth of debt so it doesn't need to refinance the stuff that is presently coming due?

Pay off debt with what?  They continue to generate losses each quarter, not profits. ;)

 

Sprint's current strategy (survival) is to keep finding different ways to replace old debt with new debt, ideally at a lower interest rates.

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Hmight Member Level: 3G EVDO

Hmight

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Pay off debt with what?  They continue to generate losses each quarter, not profits. ;)

 

Sprint's current strategy (survival) is to keep finding different ways to replace old debt with new debt, ideally at a lower interest rates.

 

I like the stock long term.  The company is still bleeding cash, but they are gaining valuable customers. I do not see this trend is reversing as long as Marcelo is at the helm.  They have beefed up their balance sheets and have pulled a few financial engineering moves (thanks to Softbank) to get to where they are today.  I am seeing 3rd carrier roll out in markets they have not even announced.  This will improve the speed on the network, and capacity with their densification plan.  They are in the same position of Tmo was a year and half ago.  I expect growth will continue this quarter (around 450k postpaid phones and potentially more tablet adds with the new unlimited plan). 

 

I expect FCF will be a reality in FY 2017.  A merger or not, Sprint is in a good spot.  It is still cheap to buy and I will buy more when it is taking a 10%+ dip. 

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bucdenny Member Level: 4G WiMax

bucdenny

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Sprint stock rally from Trump election is a bit too thin hype for me.  I just sold off 25% of my Sprint position at $7.28, offloading way more shares than I bought last week.

 

Also, we are already seeing interest rates (bonds) jump significantly the past two days.  If the Fed increases rates next month along with Trump's anti-Fed rhetoric-backed policies, it will be much harder for debt-straddled companies like Sprint to refinance.

 

52 week high today @ $7.50.

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Hmight Member Level: 3G EVDO

Hmight

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$8 this morning. Time to sell or hold?

 

I'm riding this.  There will not be any news of merger until at least 1st quarter of next year.  Sprint is going to add phone subs again this quarter. They are going to pay off 2B of debt on 12.1.2016.  Nothing negative for me to sell. 

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JimBob Member Level: eHRPD

JimBob

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$8 this morning. Time to sell or hold?

I just sold some more shares at $7.97

 

I reiterate my position of hype wariness and believe the stock will get hit negatively by the Federal Reserve raising interest rates in December.

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Hmight Member Level: 3G EVDO

Hmight

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I just sold some more shares at $7.97

 

I reiterate my position of hype wariness and believe the stock will get hit negatively by the Federal Reserve raising interest rates in December.

 

We have different philosophy, but here's my 2 cents.

 

Sprint has gotten off the bonds market to finance.  Softbank has essentially been financed (or guaranteed) Sprint's debt with various entities (leasing and spectrum Co.).  As long as the company is growing, I am not concerned about the 30B+ in debt with a Sprint's strong balance sheets. 

 

Raising interest rates will have little impact on Sprint in December. 

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Hmight Member Level: 3G EVDO

Hmight

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52 week high @ 8.73.  Hold?

Depends on what you think the future holds for Sprint.

 

I am an optimist and I think this is just the beginning of the ride. I won't consider selling at least until after Trump is in office. 

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