Sprint Nextel Corp (S)

ramstock59 (< 20) Submitted: 7/31/07 2:44 PM : Start Price: $20.70 S Score: 43.08

T & VZ reported earnings Q2. Wireless subscribers sequentially up over 2x S's last quarter. Churn rate improving, "customer retention" while gaining mkt share. ARPU's increasing.
S's Q2 8-8-07 if they miss at current p/e 43 large institutional shareholders will be unloading. Stock declining despite Cramer's recommendation to buy on takeout speculation. Market cap at $59B. Significant percentage of assets in Goodwill and Other intangibles may be subject to be marked to market based on specific accounting regulations related to financial performance and share price. See notes in annual report. SO why would private equity be willing to invest in existing Goodwill/intangibles that are subject to re-evaluation and write downs.

Earnings not meeting expectations will create much concern over management's guidance given in Q1 which was nothing short of disaster planning. Read the fine print in Q1 report. Earnings less than expectations; I expect stock to retrace to 52 week low.

Report this Post Replies: 0 | Reply