investora2z Friday, 11/01/13 06:56:52 AM Re: None Post # of 140 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.