Sprint, read attached article
Institutional Professional Free Financial Market APIs
Join Now | Why Join? LOG IN
Barchart.com
Home
Stocks
Options
ETFs
Futures
Forex
Funds
Economy
Education
My Barchart
Premium Services
Market Pulse
Indices
Signals
Price Surprises
Sectors
Stock Picks
News & Commentary
Advanced Options
Screener
GO
Symbol Search
Select a Commodity --Grains and Oilseeds-- Wheat Corn Soybeans Soybean Meal Soybean Oil Oats Rough Rice KCBT Wheat Spring Wheat Canola --Currencies-- U.S. Dollar Index British Pound Canadian Dollar Japanese Yen Swiss Franc Euro FX Australian Dollar Mexican Peso New Zealand Dollar --Energies-- Crude Oil WTI Heating Oil Gasoline RBOB Natural Gas Ethanol Crude Oil Brent ICE Crude Oil WTI ICE Gas Oil ICE Natural Gas --Financials-- 30 Year T-Bond Ultra T-Bond 10 Year T-Note 5 Year T-Note 2 Year T-Note 30 Day Fed Funds Eurodollar --Indices-- E-Mini S&P 500 E-Mini Nasdaq E-Mini Dow Full-Sized S&P 500 Index E-Mini S&P Midcap E-Mini Russell 2000 Full-Sized Nasdaq 100 Full-Sized Dow Industrials --Meats-- Live Cattle Feeder Cattle Lean Hogs Milk Class III --Metals-- Gold Silver High Grade Copper Platinum Palladium --Softs-- Cotton #2 Orange Juice Coffee Sugar #11 Cocoa Sugar #16 Lumber --European Grains-- Rapeseed Feed Wheat Milling Wheat Corn Malting Barley --European Indices-- Euro Stoxx 50 Index FTSE 100 Index DAX Index Swiss Market Index CAC 40 Index AEX Index --European Financials-- Euro Bund Euro Bobl Euro Schatz 10-Year Long Gilt 3-Month EuriBor 3-Month Sterling 3-Month Euroswiss --European Softs-- Sugar White #5 Cocoa #7 Coffee Robusta 10-T Coffee Arabica
or enter GC* - Gold Futures
Get the Barchart App
News & Commentary
Top Stories
Aerospace
Agriculture
Business Services
Construction
Consumer Products
Corporate
Energy & Oil
Finance & Banking
Industrial Products
Leisure & Recreation
Media
Medical
Retail Sales
Technology & Comp
Transportation
Utilities
Video
Video Headlines
More News
IBD News
Barchart Morning Call
Chart of the Day
Forex News
Futures News
Stock Picks
More Stocks
Market Overview
Indices
Signals
Price Surprises
Sectors
Covered Calls
Stock Screener
Special Offers
Try CRB Trader
Trends in Futures Trial
More Free Newsletters
YOU ARE HERE: Stocks » News & Commentary »
Google+ Share or Bookmark
Is The Sprint Stock About to Pop?
Dana Blankenhorn - Amigobulls - Fri Dec 11, 5:07AM CST
•Sprint is cutting expenses, increasing marketing and could be profitable soon.
•Sprint stock is currently valued at half what T-Mobile is, but has the same revenue base.
•Controlling shareholder Softbank might make a deal that could cause Sprint stock price to pop.
Sprint stock may be about to pop
Flickr
Sprint (NYSE:S) has been disappointing investors for some time, but that may be about to change.
ADVERTISING
It’s not that big changes are coming to operations, although cutting $2.5 billion through lay-offs should create a profit at a company where revenues are $35 billion/year.
Note: You might also be interested in ‘Sprint Earnings Miss Estimates, But All Is Not Lost‘.
Showing a profit would make the shares in the fourth-largest wireless carrier more comparable to those of rival T-Mobile US (NASDAQ:TMUS), which brings $500 million per quarter to its bottom line, on a similar $8 billion revenue figure. T-Mobile is currently valued at twice what Sprint is, $29 billion against $14 billion.
Sprint is not going to be organically cash constrained, thanks to a leaseback deal on phones with parent Softbank (OTC:SFTBY) that will bring in $1.1 billion in cash.
The company is still fighting for market share, and not giving up. When the company starts showing a profit Sprint stock price could double from its current price of under $4/share very quickly.
But I don’t think that’s the catalyst, or the reason to speculate on Sprint stock today.
I think Sprint is about to do a deal. Comcast -A (NASDAQ:CMCSA) is looking for a partner to create a hybrid WiFi-cellular offering. It’s a big hole in the cable company’s offerings. Comcast has spectrum and could easily do such a deal with Sprint – perhaps taking a minority stake for operations expertise, with an option to buy the rest. Or pressure from Comcast’s entry could be the catalyst for Sprint and T-Mobile to finally merge, creating a viable third alternative to Verizon (NYSE:VZ) and AT&T (NYSE:T).
Softbank CEO (and controlling Sprint shareholder) Masayoshi Son has the ambition of creating the world’s first global wireless carrier, and he is not one to sit around idly, letting a losing asset fester. He is going to act. He has plenty of assets with which to act – Softbank has more of Alibaba (NYSE:BABA) than Yahoo (NASDAQ:YHOO) does – and Comcast’s pending market entry means there are now more moving parts to push around the board.
This is all speculation, but Son is a gambler, a man I have been following for almost three decades now. He likes to put things together and he has the market cap – about $60 billion – to play with. He could decide to buy the rest of Yahoo and sell the bulk of Sprint, but even that deal would bring a premium over the company’s current valuation.
I may be wrong, but Son-san likes to make his big deals late in the fiscal year, which for Japanese companies means the end of March. If he is prepared to move, you should not have long to wait. And even if I’m wrong, the operational changes should create a profit that could double the stock’s value.
The article Is The Sprint Stock About to Pop? originally appeared on amigobulls.com.
Disclosure: The views expressed in the article are of individual authors and are not necessarily supported by Amigobulls. We do not hold any stake in the aforesaid stocks. Please read our detailed disclosure.
Related Stocks
S - Sprint Corporation
Sym Last Chg Pct Volume
S 3.65 -0.30 -7.59% 20,764,500
TMUS 36.00 -0.34 -0.94% 5,009,700
T 33.17 -0.50 -1.49% 26,950,799
VZ 44.82 -0.50 -1.10% 16,481,799
We have some incredible research to show you about your favorite stock. See if we think this is a buy, sell or hold opportunity.
REGISTER FOR FREE BARCHART NEWSLETTERS
I would like to receive these free email subscriptions:
Barchart Morning Call
Barchart Chart of the Day
InsideFutures Newsletter
Special Offers
Emails sent by Barchart.com - 209 W. Jackson - Chicago, IL 60606
MARKETS
Stock Quotes
Futures Quotes
Forex Quotes
ETF Quotes
News & Commentary
MY BARCHART
My Portfolios
My Charts
Market Pages
Screeners
Historical Data
Trading Software
QUICK LINKS
Site Map
Contact Us
Advertise
Webmaster Tools
Barchart Mobile
Financial Data APIs
Market Data APIs
Copyright © 2015 , Barchart.com Inc. All Rights Reserved. User agreement applies.
Stocks: 15 minute delay, EST. Futures and Forex: 10 minute delay, CST. Market Data subject to terms of use and privacy policy.
AI
