Bernstein Downgrades Sprint, Notes Bankruptcy Risk; Shares Fall

[irev210]

I cannot speak for others, but my reaction to Moffet's comments has little to do with the positive/negative tenor of his assessment (though I do agree with others that Moffet needs to bone up on Sprint spectrum analysis before he spouts off).

 

More generally, I just think that human, psychological elements (e.g. woefully imperfect information) render the stock market an irreparably flawed system.

 

AJ

 

Of course it is flawed. If it wasn't flawed no stock price would ever change.

 

I think it is better to look at it from a long-term angle. I can argue (imperfectly, of course) that apple today, in terms of dollars, is worth more today than 5 years ago. How do you value that if you own part of the company (even more so now that the company pays divs)?

 

Sprint never had to become a public company. There are lots of companies (like Cox communications for example) that are private and not subject to a bunch of people stating their opinion.

 

Anyway, it's interesting to see the process work. You have one person that says sprint is awesome, another person says sprint is going to go BK... how do you actually know what is going to happen?

 

One answer: visit s4gru.com

[MacinJosh]

One answer: visit s4gru.com

 

Excellent answer, irev210!

[strung]

I'm pretty mad at Craig Moffett right now. I'm still trying to earn all my trading fees right now, and he just ruined it for me.

 

how many shares are you in for

[S4GRU]

I appreciate all the self moderation done on this thread. You guys just prove how we are the best forum on the internet. I really have enjoyed reading this thread. Even if the author of the hit piece is misguided in several key areas.

 

Kudos to you all!

 

Robert

[MacinJosh]

how many shares are you in for

 

10, but planning to buy more soon. Hoping to get 100 total.

[pyroscott]

I'm sorry if I'm upset, and it's not just from an investment view. I'm upset as a Sprint customer this man is trying to put Sprint into a category that they shouldn't fall in. They are doing everything they can to survive in the wireless wars, but his partiality is to another carrier, and he must be bitter that at&t didn't buy T-Mobile, so he's downplaying Sprint to eliminate them from the Battle of the Carriers.

 

I'm upset by his comments and I don't own stock or have sprint service currently. I just think that he has crippled what sprint is trying to accomplish in the short term so he and his cronies can transfer some more wealth through a volatile stock. They just prey on the naive and hurt the companies they use.

 

Sent from my Galaxy Nexus using Tapatalk

[S4GRU]

 

I'm upset by his comments and I don't own stock or have sprint service currently. I just think that he has crippled what sprint is trying to accomplish in the short term so he and his cronies can transfer some more wealth through a volatile stock. They just prey on the naive and hurt the companies they use.

 

Sent from my Galaxy Nexus using Tapatalk

 

You raise a good point. There is a lot of money to be made by getting inexpensive stocks to tank temporarily. Write a hit piece on a $2 stock and watch it lose 30% value. Jump in and buy shares. Then watch it recover over the next week when the counter points are made and you make all that gain as easy money.

 

If I could make 30% on my money every week, I'd be a very rich man. However, this kind of stuff is pure greed and evil when it happens.

 

Robert

[Sgt. Slaughter]

 

You raise a good point. There is a lot of money to be made by getting inexpensive stocks to tank temporarily. Write a hit piece on a $2 stock and watch it lose 30% value. Jump in and buy shares. Then watch it recover over the next week when the counter points are made and you make all that gain as easy money.

 

If I could make 30% on my money every week, I'd be a very rich man. However, this kind of stuff is pure greed and evil when it happens.

 

Robert

 

That is illegal and highly punishable when caught...

Market manipulation for ones benefit is a big nono..

 

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[MacinJosh]

That is illegal and highly punishable when caught...

Market manipulation for ones benefit is a big nono..

 

Sent from my PG86100 using Tapatalk

 

And unfortunately it happens all the time and so many people get away with it.

[Sgt. Slaughter]

 

And unfortunately it happens all the time and so many people get away with it.

 

Not as much as you'd think because the punishment is severe and not worth it...

Everything is monitored so heavily its sickening, but also for the greater good.

Example at the hedge fund if i bought a stock in my personal account I was not allowed to trade that stock for 3 trading sessions at work because I could necc buy my personal and then push it up with the work account bc of the capital I had to available to deploy, then sell the personal higher...big nono if caught.

 

Had to do compliance stuff every year for it. It may happen but the amount is small compared to what it could be...

 

Sent from my PG86100 using Tapatalk

[pyroscott]

Not as much as you'd think because the punishment is severe and not worth it...

Everything is monitored so heavily its sickening, but also for the greater good.

Example at the hedge fund if i bought a stock in my personal account I was not allowed to trade that stock for 3 trading sessions at work because I could necc buy my personal and then push it up with the work account bc of the capital I had to available to deploy, then sell the personal higher...big nono if caught.

 

Had to do compliance stuff every year for it. It may happen but the amount is small compared to what it could be...

 

Sent from my PG86100 using Tapatalk

 

Interesting. Good to see that it is closer monitored than I thought.

[MacinJosh]

 

Interesting. Good to see that it is closer monitored than I thought.

 

Same here

 

Sent from Josh's Evo Shift 4G using Forum Runner

[Sgt. Slaughter]

 

Interesting. Good to see that it is closer monitored than I thought.

 

I mean nothings perfect by any means...but if the guys that have enough following come out and bash stocks to buy them or pump them up to sell them shortly after, then they would be the ones to be caught. They are in the public eye too much to get away with much...

 

Another example, my wife works for fidelity and my personal accounts not held with fidelity are looked over like a hawk by their compliance to make sure I'm not getting inside info from her and I have to justify my trading strategy/ideas...

 

 

 

Sent from my PG86100 using Tapatalk

[irev210]

I'm upset by his comments and I don't own stock or have sprint service currently. I just think that he has crippled what sprint is trying to accomplish in the short term so he and his cronies can transfer some more wealth through a volatile stock. They just prey on the naive and hurt the companies they use.

 

Sent from my Galaxy Nexus using Tapatalk

 

I think you are getting too caught up in one persons opinion. You do realize that more "wall street" analysts have "buy" recommendations than "sell" recommendations on sprint stock, right?

 

I think the guy is just doing his job (poorly) and people (for some odd reason) actually put value in his recommendation.

 

May not be right or wrong, but it is his opinion. If he drives down the stock it creates opportunity for others. One guy can't cripple what sprint is trying to accomplish. Any time more "expert" opinion or more information (like S4GRU) is available, it actually helps reduce swings in prices.

 

Look here:

http://finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=s

Edited March 20, 2012 by irev210

[Duffman]

The only reason he is getting attention is that "bankruptcy" makes for a shocking headline. It got my attention when I saw it.

[pyroscott]

I think you are getting too caught up in one persons opinion. You do realize that more "wall street" analysts have "buy" recommendations than "sell" recommendations on sprint stock, right?

 

I think the guy is just doing his job (poorly) and people (for some odd reason) actually put value in his recommendation.

 

May not be right or wrong, but it is his opinion. If he drives down the stock it creates opportunity for others. One guy can't cripple what sprint is trying to accomplish. Any time more "expert" opinion or more information (like S4GRU) is available, it actually helps reduce swings in prices.

 

Look here:

http://finapps.forbe...alysis.do?tkr=s

 

Sprint has lost 7% since he wrote that. And stock price has a lot to do with what Sprint can and can't accomplish. It can cripple their efforts in the short term until it rebounds.

[irev210]

Sprint has lost 7% since he wrote that. And stock price has a lot to do with what Sprint can and can't accomplish. It can cripple their efforts in the short term until it rebounds.

 

Like I said before, it goes both ways. A few % move is not going to hinder Sprint's ability to manage its business. I find it almost comical that you would think that this particular analyst would be financially motivated to put out a "sell" recommendation. You know that he can't transact on his report, right? He can't say "sprint sucks" then make money off that play...

 

Sprint Nextel Corp. (S), the third- largest U.S. wireless operator, surged to its highest value since December, after a Wells Fargo Securities analyst said it had taken advantage of recent mobile data moves at AT&T (T) Inc. and struggles at T-Mobile USA to gain their subscribers.

Link:

http://www.bloomberg...iber-gains.html

 

See, some analysts say buy, makes stock shoot up. Some say sell, stock goes down... in the long-term, the stock price is going to be determined on how Sprint itself performs, not what some "analyst" says.

 

Just look at the year-to-date performance. Sprint is up 16.67% YTD after the "analyst" report vs. 17.94% before the "analyst" report in the matter of a day.

 

I think you need to look beyond just today and yesterday. What caused Sprint stock to fall from almost 6 dollars a share in June 2011 to ~2.75 today? I can tell you one thing... it wasn't that guys opinion.

Edited March 20, 2012 by irev210

[S4GRU]

You can do lots of things through a third party. He may not be able to do it himself. Its a poorly written hit piece. If you use the B word, you better know what the hell you're talking about. The author is either an idiot, an arse or trying to game the system.

 

And just like it was his opinion, these are mine. And those were Scott's.

 

You can't defend the author opinions and then pick on the opinions of our members. Just explain your opinion in contrast to other members. Thanks.

 

Robert, Roberto, Admin, Hey You! Its all good! But this was posted from my E4GT with ICS using Forum Runner

[irev210]

You can do lots of things through a third party. He may not be able to do it himself. Its a poorly written hit piece. If you use the B word, you better know what the hell you're talking about. The author is either an idiot, an arse or trying to game the system.

 

And just like it was his opinion, these are mine. And those were Scott's.

 

You can't defend the author opinions and then pick on the opinions of our members. Just explain your opinion in contrast to other members. Thanks.

 

Robert, Roberto, Admin, Hey You! Its all good! But this was posted from my E4GT with ICS using Forum Runner

 

 

I think we are all saying the same thing here - the Bernstein analyst is an idiot.

 

I am not defending his opinion. I am defending his right to an (idiotic) opinion.

 

Lots of people put out reports saying "buy" or "sell" or "whatever". I do take issue when someone puts out an opinion and then someone just assumes that they are "gaming" the system or hurting Sprint by stating his opinion.

 

My point to Scott was that this happens ALL the time to LOTS of stocks, not just sprint. It might swing the stock one way or the other for a few days but in the long-term it is totally irrelevant. It doesn't come down to him putting out a report to "hurt sprint for his own personal profit". It is him spending a few hours looking at a few financials and putting out a half-baked report so he could get his paycheck and move onto the next thing.

 

Not sure how I am picking on anyone here. The only person I am calling an idiot is that Bernstein guy....

 

Scott, if it felt like I was picking on you - sorry about that - not my intention

[pyroscott]

Ha, ha. I lace up my boots every day defending American's right to an idiotic opinion.

 

Not a problem brother.

[S4GRU]

Ha, ha. I lace up my boots every day defending American's right to an idiotic opinion.

 

Not a problem brother.

 

Scott, welcome to the LTE Advanced member Level!

[irev210]

He is on da video now too! hahaha

 

http://www.bloomberg.com/video/88609938/

[S4GRU]

 

Lots of people put out reports saying "buy" or "sell" or "whatever". I do take issue when someone puts out an opinion and then someone just assumes that they are "gaming" the system or hurting Sprint by stating his opinion.

 

 

Whether or not he is gaming the system is definitely an unproven point on all of our parts. But he is indeed hurting Sprint by stating his opinion. We all have a powerful voice in the internet age.

 

I could create a series of articles that could significantly impact Sprint myself, and just call them opinion pieces. I could write them in a way that they would be picked up by all the tech sites within an hour and possibly even the Wall Street Journal in a few hours. Just because I have an electronic sword, doesn't mean I need to wield it. Even at worthy adversaries. Personal responsibility is being lost in this day and age.

 

Robert

[MacinJosh]

Personal responsibility is being lost in this day and age.

 

Robert

 

So true. And how sad it is.

[irev210]

Whether or not he is gaming the system is definitely an unproven point on all of our parts. But he is indeed hurting Sprint by stating his opinion. We all have a powerful voice in the internet age.

 

I could create a series of articles that could significantly impact Sprint myself, and just call them opinion pieces. I could write them in a way that they would be picked up by all the tech sites within an hour and possibly even the Wall Street Journal in a few hours. Just because I have an electronic sword, doesn't mean I need to wield it. Even at worthy adversaries. Personal responsibility is being lost in this day and age.

 

Robert

 

True on the gaming part. None of us know... so it's not really fair to say either way. None of us have even read the full report (I haven't anyway). Makes it hard to even talk about. In the video he even says that Sprint is going to do very well or possibly go into bankruptcy.

 

Robert, people are starting to listen to you because you have worked hard to develop a reputation. If you put out a bunch of incorrect info, people would probably stop coming to this site or taking you seriously. If the Bernstein analyst was always wrong, nobody would ever listen to him and he would (likely) get fired.

 

Yes, you have an electronic sword - but you earned it, it wasn't given to you.