Sprint Nextel Corp (S)

There is so much negativity built into Sprint that you just can't push it down much more. It is a given that Sprint has had a lot of bad press caused by customer care issues and misconceptions on the merger of Sprint and Nextel, and this has given rise to Sprint's poor image and customer defections. People have become hesitant to be associated with the Sprint name, making people much more likely to jump to another carrier.

You have to look at the hand that Sprint holds, though, and see that Sprint has an arsenal of tools to turn the company around...it just takes the right management to use them. If you compare the actual network performance, Sprint outperforms in both voice and data. All it will take is for some of the naysayers to jump off the Sprint-loathing bandwagon and the customers will start to realize their service is really pretty great. Add to that Sprint's recent improvements in customer service, industry-best pricing plans and pretty cool phone lineup and you will start adding customers again.

Even if you simply value the company based on assets, it looks cheap. A massive network infrastructure combined with loads of spectrum in the 800, 900, 1900 and 2500 MHz bands, there is tremendous value bottled up.

Two options for Sprint, and they both signal a buy:

a) Public perception shifts and profits accelerate

b) Company is bought up for a premium

Good luck,

PP

Sprint has officially place all 4G work on "indefinite hold" in all but just 3 big markets. It is a nationwide cancellation of work. They are releasing all contractors and cutting off all vendors. This means that 15 markets will stop half finished and remain so. WiMax is being dumped.

They have a new plan in place that will be announced at CTIA in two weeks.

Sprint has had a bad quarter, but they are making changes to correct. Their network and infrastructure position them well for the future.

Company is poorly run, built into price.

Customer defection rate, slower, but still horrendous, built into price.

Net loss for last quarter, missing street estimate, as of today, built into price.

Don't agree with head bull post that they have the best data or voice quality network - that survey winner usually goes to Verizon wireless, this is generally built into price.

I don't know about a bottom, but short of bankruptcy, I can't imagine a lower price than they are at now. With slowdown, people will still have their wireless plans, so I'll assume they have no more feet to shoot themselves, and it goes up from here.

Sprint is unhealthy in the worst ways. They are operating two simultaneous infrastructures, thanks to the Nextel debacle. And the transition away from the Nextel network will either require a lot of time or a big one time spend. Not an accounting charge to realize losses like in Q4-CY07, but a real dollar spend, likely financed by debt as their cash position is weak. They have sagging revenue, largely pushed down by strong competition with better devices, more perceived strength in network coverage and speed (true or not doesn't matter), and extremely weak advertising and promotions that have seriously hurt the brand. They are living on borrowed time.

They have done a few things right: spin off Xohm, which is based on the flawed WiMax technology, into the new Clearwire merged company. Growth there will be slower than hype would have you believe--the value proposition is dubious (wireless is not a selling point for fixed home/biz networking, and real world speeds are dissatisfying). And the required build out of entirely new infrastructure will put them far behind LTE deployments from T and VZ in every market. Slow to market with no compelling competitive differentiator. But that business is no longer an S problem, and if I am wrong then S beenfits from the equity they hold in the venture.

And they have Boost mobile--a very successful prepaid label that doesn't suffer from a public association with the Sprint brand (sort of Sprint's Xbox, if you will). Revenues there are growing, given the economy. But, they are not growing enough to make up for losses in the core business.

When news of a 20MM cost cut drives your stock up 10% in a day, you are in deep S. ;)

Have you ever needed service and visited one of their store fronts. Talk about an exercise in massive patience. Couple that with a shrinking subscriber base, bad coverage and out dated networks and you will soon get the idea that they need to do something to turn the company around. What happended to all thay money they saved by off-shoring? I myself and looking for a new provider. Think Verizon or Cingular! Don't even get me started on the lack of good phones. It seems their competition has better coverage, better equipment, and better growth rate plans.

Sprint just launched the first ever iteration of Rev A EVDO service in San Diego. I can personally testify as to how great the service is in Northern Virginia.

Sprint will outperform because of their data services.

Price to Book is less than 1. According to some other pitches, they have a good thing coming with longer distance wireless. Projected annual growth rate for next 5 years of 14%. Forward P/E of 12. Debt to equity less than 0.5.

A lot of hope or hype concerning this company's come back.
For a well known company to have this high a percentage gain in one day suggests a lot of speculation. Once this most recent market rally fades, this stock will continue its downward course.

“All that glitters is not gold”, the statement fully holds true with telecom major Sprint Nextel corp. which has now become the third largest player in the US wireless market (in subscriber terms), after Cingular Wireless and Verizon Wireless.

With the history spanning over 68-years, Sprint Corporation, added one more credit to its tally, when it merged with Nextel communications in the mid 2005. The group, which once had comprehensive suite of wireless and wireline communications products and services in its key offerings, is now strategically concentrating fully on providing wireless services. Following the spin-off of Embarq (Sprint Local), Sprint Nextel is now the only fully independent nationwide wireless provider and is expected to derive nearly 95% of its profits from providing wireless segment services.

Taking a cue from 2006 performance, Sprint Nextel’s position in the market is not as strong as many had thought it to be, since the close of its merger with Nextel. With lagging subscriber growth that is likely to continue, and a continued dependency upon a highly volatile and unpredictable prepaid subscriber base, we believe Sprints’ seemingly cheap stock will remain so, over the next one year. Going forward, competition is expected to increase as a result of other technologies and services that are developed and to be introduced in the future, including potentially those using unlicensed spectrum, including wireless fidelity, or WiFi. The continued addition of MVNOs (Mobile Virtual Network Operator), also contributes to increased competition in the sector.

We expect the company to perform well, but not immediately. With tough competition and high churn rates being anticipated in coming two years, we expect a steady decline in its ARPU (Average Revenue per user), restricting the top-line growth. Also, recent acquisition of PCS affiliates has led to huge debt obligations, which will mature this year and onwards, will have a dampening affect on the free cash flows of the company. Though, the aggressive implementation of share repurchase program sends a positive signal to investors, the high P/E multiple of the company vis-à-vis industry’s makes it a vulnerable scrip to trade.

CEO putting himself in his ads -- that's it for me, that's all it takes.

Have you heard about the Palm Pre?

Sprint was priced as though it was going into oblivion. However the fundamentals manifested otherwise. Last quarter to everyone’s surprise they beat earnings estimates by 8 cents, paid down their debt by $600 million and added $800 million to their reserves, which now exceeds $4.5 billion. The company also has net cash flow of $3 billion. Their subsidiary Boost Mobile, best known for Prepaid customers had net additions of 800,000 new accounts and continues to grow at the same pace. Sprint's new management, starting in the first quarter of 2008 under the leadership of Dan Hesse, has been impressive in his actions in returning the company to profitability. He spun off the companies Wimax (4G) division into a joint venture with Clearwire, however maintaining 51% majority ownership. Clearwire also has a dream team of investors; Intel, Google, Time Warner, Comcast, Samsung and just recently Cisco. With Hesse at its helm the company has managed to cut costs through organic restructuring during these recessionary times. During his tenure the company has beaten earnings estimates four out of the last five quarters. Customer service has improved dramatically and anyone dealing with the company will ascertain that this is an unequivocal fact. All of this was done without a decent Smart phone contender, like the iPhone or Storm, however in two weeks Sprint will not only have a contender but it will have an exclusive on the best contender to date, the Palm Pre. According to the experts in the wireless world this could quite easily be the iPhone killer. Whether it is or not it will without a doubt be a major contender. It is my understanding that the Pre will also be 4G compatible, which is something ATT/iPhone will not be able to compete against, since ATT will not have a ubiquitous 4G network until 2012. Notwithstanding the aforementioned Sprint is very attractive on a valuation basis as a takeover target. With 49 million customers in the continental US a foreign telecom would do well in a Merger & Acquisition while Sprint is trading at around $15 billion. It is rumored that Telefonica, a $100 billion dollar global telecom company, is looking to do a major acquisition in the US and that Sprint is under its radar. Short of the economy going into a Depression, I expect Sprint to ensconce itself back to $9.5 a share, or $27 billion.

sprint infrastructure stinks. they also don't have the organizational leadership or structure to quickly implement decisions - which is kind of self-defeating...seeing as how they are in one of the most volatile industries.

Reward 20.00/ Risk= 15.00
Fact of matter trending higher with a series of Higher lows, with a big gap to fill from 18-20. Could take a day to close or a year, I don't know , but I am long.

Testing out a portfolio of stocks rated outperform that are characterized by having one letter ticker symbols.

A great value play unless you think S will go B/K. Two years ago S had nothing to provide its customers to compete with AAPL, however HTC's diamond can easily emulate the iPhone. I love the phone and at $99 S is the best value for those of us that use our phones the most. Customer service has drastically improved and it is only a matter of time before the negative aura surrounding the company to fade away.

Sprint Nextel is a trainwreck. They have yet to complete their merger, either culturally or operationally. They have zero concept of their market and seem to think they are an "entertainment" company (the ceo's words). Don't even speculate - wait for a suitor.

I would've liked to get in at $8, but at it's current price I still think it's a buy. The new CEO is cleaning house and working hard to fix Sprints customer service (their prime issue). Sprint still has a large customer base and could be a buyout target if they stay around this price. They also have WiMax which I think handles that 'last mile' much more effectively than running FiOS to each house.