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centermedic

By centermedic
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JimBob Member Level: eHRPD

JimBob

Posted
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Sprint took a beating the last week or so.  Maybe people trying to recover from the Christmas shopping all selling at once?  Regardless, I'm probably going to sell soon.  Hopefully it'll return to above the $5 mark.  Looking at Netflix stock and it appears to have almost tripled in value in 2015, alone. 

Possible recent downward pressures:

- Verizon announced switching incentives  (up to $650 to jump ship from their competitors; thus a continuing race to the revenue bottom for the saturated mobile telecom market)

- Selloff of junk bonds, including Sprint debt  (decreasing confidence that heavily indebted risky businesses and countries will be able to pay off their obligations)

 

The upside catalysts (fantasy hopes) for Sprint's stock price in the near-term are:

- Surprise subscriber wins due to recent marketing and pricing incentives (that did not work before)

- Surprise network sharing or investment deal with another business  (such as DISH or Comcast)

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Ascertion Member Level: LTE Advanced

Ascertion

Posted
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Possible recent downward pressures:

- Verizon announced switching incentives  (up to $650 to jump ship from their competitors; thus a continuing race to the revenue bottom for the saturated mobile telecom market)

- Selloff of junk bonds, including Sprint debt  (decreasing confidence that heavily indebted risky businesses and countries will be able to pay off their obligations)

 

The upside catalysts (fantasy hopes) for Sprint's stock price in the near-term are:

- Surprise subscriber wins due to recent marketing and pricing incentives (that did not work before)

- Surprise network sharing or investment deal with another business  (such as DISH or Comcast)

I was thinking if a new chairman replaced Tom Wheeler (come 2017), the new chairman may be open to T-Mobile/Sprint merging (I know Son is still open to the idea, no idea about DT.)  But if this news came out that they were in talks, the stock may jump back up again.  Sprint hit $10/share during the rumors last time.

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Ascertion Member Level: LTE Advanced

Ascertion

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Not sure but I bought some @$3.27 this am

 

Sent from my SM-N920P using Tapatalk

Sitting at 3.15 now.  I am convinced the only thing that'll bring it back is when Sprint finally pulls a profit (unlikely this year.) or merger news starts occurring again.

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DanielB Member Level: 3G EVDO

DanielB

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Sprint is below $3.20 today. Any news causing it to go that low?

Nah, nothing specific to Sprint. There's simply lots of blood in the streets, as there has been the past couple of weeks unfortunately. It's certainly an ugly start to the new year. The junk bond environment will continue to be a drag on Sprint if things improve for others. Ascertion is right - Sprint needs to show rapid improvement in its fundamentals (and soon!) to improve its valuation.

 

Edit: I think if Sprint's fundamentals begin to improve rapidly, such that it's bond ratings would also improve, you may see SoftBank swoop in fairly quickly and purchase the remaining stake they don't yet own. At these levels, it's beginning to almost be crazy for them not to at least consider such a move.

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caspar347 Member Level: 4G WiMax

caspar347

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Hopefully Sprint has good things to tell when they release numbers or they're going to be in danger of delisting.

I doubt Softbank would let that happen. (But it certainly looks like it could.)
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caspar347 Member Level: 4G WiMax

caspar347

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Not really sure how SoftBank could prevent it, short of buying tons of stock - but isn't their share limited to 85% by the US government?If the stock goes low enough for long enough, there may not be much they could do.

 

Hopefully it doesn't get to that.

Going over 85% ownership would by contract terms force them to buy the last 15% and they don't wanna do that for tax reasons and stuff. But I'm sure they'd rather do that than delist.

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JimBob Member Level: eHRPD

JimBob

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Softbank only owns 83%. They can buy some more shares at $3 to try and support the stock for at least a day or two...

I strongly wish Claure and other Sprint executives would also personally buy the stock.

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spotmeterf64 Member Level: 1x Advanced

spotmeterf64

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It's not like they (SoftBank or executives) can just walk into their local Charles Schwab and buy stock though. They have to file with the SEC and set a date in the future to buy it, so it's unlikely if they announced their intention to buy stock it would have much long-term effect, with everything else being equal, unless they announced a significant purchase.

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