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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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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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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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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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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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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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  • 2 weeks later...

$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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$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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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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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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    • In the conference call they had two question on additional spectrum. One was the 800 spectrum. They are not certain what will happen, thus have not really put it into their plans either way (sale or no sale). The do have a reserve level. It is seen as great for new technologies which I presume is IOT or 5g slices.  They did not bite on use of their c-band or DOD.  mmWave rapidly approaching deadlines not mentioned at all. FWA brushes on this as it deals with underutilized spectrum on a sector by sector basis.  They are willing to take more money to allow FWA to be mobile (think RV or camping). Unsure if this represents a higher priority, for example, RVs in Walmart parking lots where mobile needs all the capacity. In terms of FWA capacity, their offload strategy is fiber through joint ventures where T-Mobile does the marketing, sales, and customer support while the fiber company does the network planning and installation.  50%-50% financial split not being consolidated into their books. I think discussion of other spectrum would have diluted the fiber joint venture discussion. They do have a fund which one use is to purchase new spectrum. Sale of the 800Mhz would go into this. It should be noted that they continue to buy 2.5Ghz spectrum from schools etc to replace leases. They will have a conference this fall  to update their overall strategies. Other notes from the call are 75% of the phones on the network are 5g. About 85% of their sites have n41, n25, and n71. 93% of traffic is on midband.  SA is also adding to their performance advantage, which they figure is still ahead of other carriers by two years. It took two weeks to put the auction 108 spectrum to use at their existing sites. Mention was also made that their site spacing was designed for midrange thus no gaps in n41 coverage, while competitors was designed for lowband thus toggles back and forth for n77.  
    • The manual network selection sounds like it isn't always scanning NR, hence Dish not showing up. Your easiest way to force Dish is going to be forcing the phone into NR-only mode (*#*#4636#*#* menu?), since rainbow sims don't support SA on T-Mobile.
    • "The company’s unique multi-layer approach to 5G, with dedicated standalone 5G deployed nationwide across 600MHz, 1.9GHz, and 2.5GHz delivers customers a consistently strong experience, with 85% of 5G traffic on sites with all three spectrum bands deployed." Meanwhile they are very close to a construction deadline in June for 850Mhz of mmWave in most of Ohio iirc. No reported sightings.
    • T-Mobile Delivers Industry-Leading Customer, Service Revenue and Profitability Growth in Q1 2024, and Raises 2024 Guidance https://www.t-mobile.com/news/business/t-mobile-q1-2024-earnings — — — — — I find it funny that when they talk about their spectrum layers they're saying n71, n25, and n41. They're completely avoiding talking about mmWave.
    • Was true in my market. Likely means a higher percentage of 5g phones in your market.
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