Maybe you missed this, even if Credit Suisse is off by a large margin it's still open for a few bucks move north! See last paragraph about cash flow, didn't 'S' just sign a 15 year $9B deal, nuff said!
"We think now is a good time to add or initiate a position in Sprint. It is trading at a discount to its true value, and analysts agree.
Credit Suisse values Sprint at $8, S&P at $6, and Argus at $7, which provides a great deal of upside from its current level of $3.75. While the most recent quarter was disappointing, the arrival of the iPhone should address most of the concerns with post-paid customers. And Clearwire's losses are slowly but surely narrowing. Credit Suisse says that "We continue to believe that there is more unrealized value in Sprint than any other stock in our universe.
Sprint controls 48% of Clearwire (CLWR), which operates Sprint's 4G network. While Sprint has been criticized for embracing WiMax instead of LTE, we think that Clearwire's move to migrate to LTE should mitigate this. In addition, Sprint has reduced its stake in Clearwire just enough so that it is not liable to pay for its debt should the company default, which we do not think will happen. While Clearwire may seem like an also-ran in the wireless space, its assets beg to differ. It holds billions in valuable spectrum, something that is not reflected in its stock price. Clearwire's market capitalization is just under $750 million, but its spectrum is worth over $4.3 billion.
This spectrum is worth around $17/share, a huge discrepancy from where Clearwire now trades. Sprint's stake in this spectrum (48%) is a bit over $2 billion, (69 cents/share), something we think is not reflected in the stock price. With this spectrum, Sprint wins no matter what happens. Should the spectrum be sold, Sprint will see a huge gain, since the demand for spectrum is insatiable. Should Clearwire retain the spectrum, Sprint will still have a stake in it. Should Sprint acquire Clearwire (at a premium to its stock price, not its assets) it would gain control of all of this valuable spectrum.
We will not shy away from the fact that Sprint has the worst balance sheet of any company we have a position in. However, it is not deteriorating, and the debt load, while large, is manageable, given Sprint's cash flow.
News 
Market Data 
Discover 
