Can Sprint finish?
Sprint Nextel (S) offers a comprehensive range of wireless and wire line communications services to consumer, business and government customers. Sprint is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering industry leading mobile data services; instant national and international push-to-talk capabilities; and an award-winning and global Tier 1 Internet backbone.
The competition in this sector is extremely intense and although Sprint isn't growing much in market share they are doing a good job in retaining the customers they have. This higher retention rate has allowed them to spend less on marketing and control administrative costs.
Wall Street brokerages look for this cost containment to fall to the bottom line and looks of a 5.90% increase in earnings per share next year. They have 4 strong buy, 10 buy and 13 hold recommendations distributed to their clients.
A good sign is the falling short interests. Part of that is due to general market conditions over all but part is due to positive articles about the stock. Since 5/28 short interests have fallen from a high of 102 million to only 31 million in the 9/15 reporting period.
Barchart has a 100% technical buy signal and the stock hit 11 new highs in the last 20 session. The price was up 14.01% last month alone and the 14 day Relative Strength Index is a high 95.24%
The general investing public as measured on Motley Fool is high and positive with the CAPS members voting 1,656 to 419 that the stock will beat the market and the All Stars are in agreement by a vote of 386 to 89. Fool notes that articles on the stock have been positive 19 to 2.
If you're looking for a core holding consider:
1 - Recent price appreciation has been consistent and positive
2 - Wall Street is recommending the stock to their clients based on increased earnings mainly due to cost containment
3 - There is a wide and positive general investor sentiment
Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.