$3.67
-0.08 (-2.13%)
Sprint Nextel Corp (S)
CAPS Rating:
A global communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of individual consumers, businesses and government customers.
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22 billion in long-term debt. Is that bad in a liquidity trap? They are also bleeding cash, and face stiff competition. As a former customer, I happily switched to t-mobile, where I'm not overcharged, hounded by inside sales calls, or treated like junk. Seems horribly managed. Technically, there's multi-month resistance in the upper $2s, so I expect to be able cover this in the mid to upper $1s within a few months.
Covering in the $1s is definitely a wise move, but I do think it's just as likely that S sees 1 or even lower before the end of 2009.They can't afford to keep losing wireless customers, but I don't see what they're doing to fix that. I don't know how much of their revenue they get from landline customers, but that's definitely a senile industry that I'll bet they have too much exposure too.About the only bright spot about Sprint I can find is their position in Clearwire, but that won't do them much good if they have to sell out in order to raise cash, which seems likely.
Looks like I'm officially short today, with some May 3 puts. I need S to fall to 2.45 to break even, and under 2 now nets me some good cash.
Worst customer service I have ever experienced from a non- mom N pop business. I left them as soon as my contract expired and coincidentally went to T-Mobile as well. PS there was a revision in the law making Sprint's contract ending penalties illegal. They used to charge around $250 per line to cancel early... now they have to prorate the cancellation fee. They are foolish to try and fleece customers in an over crowded industry.
So do all their troubles make them an interesting takeover target? Or is there too much debt to make this happen?
can it go any lower based on its value?