T Mobile US Inc (TMUS)

[Teaks1185]

Nov 1 T-Mobile Simple Choice plans are offered at Costco nation wide

[Teaks1185]

took a position at $27.00

[investora2z]

The stock has done well over the past few months. It has been on an uptrend since May, and has made new 52 week highs last week. Analysts are positive based on the long term potential of the company. The company is aggressive in the marketplace, with improved network experience and range of offerings related to smartphones. The Q2'13 numbers were good, and indicated improvement in some key metrics. The Q3'13 numbers will be released soon, and that will determine the short term trend for the stock. Smartphone sales are expected to be the main driver for increasing the subscriber base and ARPU. The acquisition of MetroPCS is expected to lead to savings of nearly $1 billion. The competition is strong, and more consolidation amongst competitors will make matters difficult. The competition is more cost based so the margins will remain under pressure. The acquisition of Leap Wireless (LEAP) by AT&T (T) could also add to the competition, as LEAP operates in those regions where TMUS operates. One analyst on SA noted that with the increasing demand of high bandwidth, TMUS might face spectrum constraints in the future. This will make it dependent on spectrum auctions and acquisitions. That may increase the leverage even further. With high levels of net debt, and low margins, the company needs to move towards reducing the debt rather than increasing it. Further, Spherix (SPEX), a patent assertion entity, has filed a lawsuit against the company alleging infringement of its patents. For T-Mobile it is critical that the company takes steps to improve the margins. While the whole industry is known for heavy leverage, T-MUS does not have the margins to support higher debt. The MetroPCS acquisition will hopefully improve the operating margins in due course to ease the pressure.

[investora2z]

An article on seekingalpha recommends to buy the stock for its long term potential. The author believes that it is well positioned to take market share from other U.S. carriers. The aggressive marketing, improved network experience and a full range of smartphones make the outlook positive. The performance in the second quarter was relatively good and there was sequential increase in revenues with addition of postpaid subscribers. Second half of 2013 is expected to be better as far as ARPU is concerned. The smartphone sales are expected to drive subscriber base and ARPU. Most importantly, the company is gearing up to take the market share from the other two giants due to less restrictive and lower priced contracts. The acquisition of MetroPCS is expected to unlock synergies by reducing the roaming and backhaul costs and the savings are expected to be between $800 million to $1 billion. Reduced employee costs and lesser bad debts also indicate improvement in efficiencies. However, there is a major risk of increased aggression by competitors like Verizone (VZ). AT&T's (T) acquisition of Leap (LEAP) is also expected to increase competition in areas where they are operating. So there is likely to be pressure on margins as the competition is likely to be more cost based. Even other analysts are predicting that the two giants are likely to find it increasingly difficult to maintain market share in view of the competition. Further, recently Spherix (SPEX) has filed a patent infringement lawsuit against the company. Hopefully, the next few quarters will indicate better performance by the company, and the acquisition of MetroPCS will improve the margins. The company has manged to expand its coverage and increase its spectrum. The current P/B and P/S is relatively low, and the author believes that there is good long term potential in the stock.

[0001]

I used to own Metro PCS shares last year and sold it, now I'm in T-Mobile. I hope it steals some more thunder

[JammingJAY]

I subscribed with T holding P stock.

P didn't have the coverage but offered good monthly plans.

My T plan is monthly, 30 bucks, 5Gb @ 4G but unlimited, unlimited text and 100 Min voice.

T had better plan than P.

I trade so I'm getting happier with what I have so far, the $4+ divi was nice and I'm looking at dumping the rest upward 20 bucks.

I have sold shares, wish I didn't. Thems da rules.

:0

[JammingJAY]

I bought Metro PCS under $6 a few years back, a small position. I now have half the shares I had and four bucks, should have sold them all when they were at this PPS years ago.

;)

But the chart is looking good.

This is not the customer complaint forum.

:P

yes that is my girl in the pink dotted white dress.

[Seshet]

TMUS =>POS

[Seshet]

PCS shareholders messed it up by selling to T-Mobile because their Customer Service is terrible! call them and see how quickly they hang up on you LOL

[JammingJAY]

Welcome to TMUS Metro PCS shareholders.

They dividend sure was nice and the stock price is holding.

So far so good.