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rffrydr
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 Posted: Mon Oct 10, 2011 7:20 pm Post subject: |
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Number one "buy on weakness" today....with giant 3-1 uptake. A "repositioning."......
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HenryTo
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Joined: 06 Aug 2004
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| Posted: Mon Oct 10, 2011 11:38 am Post subject: |
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Morningstar on Sprint's latest strategic update:
| Quote: | | Sprint's S Network Vision strategy update included a handful of positive steps and additional detail on the firm's margin expansion plans. However, management failed to address the largest elephant in the room--the impact that carrying Apple's AAPL iPhone will have on the business. Excluding any impact from the iPhone, we don't expect huge changes to our cash flow estimates based on the strategy update. However, rising uncertainty has pushed the firm's cost of capital higher. Given Sprint's need to refinance maturing debt while it funds Network Vision, this increased cost is meaningful. These issues will lead to a lower fair value estimate. The biggest change in strategy is that Sprint is accelerating and expanding the Network Vision initiative. The firm now plans to have the network upgrade completed by the end of 2013, rather than within the three- to five-year time frame previously given. Work is already under way on 22,000 cell sites, a bit more than half that will be in operation when the project is completed. In addition, Sprint is rolling out LTE technology across the entire network, with service launching in mid-2012. That schedule leaves it not far behind the pace Verizon Wireless VZ and AT&T T have set. We believe both strategy elements make a lot of sense. Accelerating the project allows Sprint to cut costs and improve coverage more quickly, providing strategic and financial benefits. The move to LTE will allow Sprint to begin moving data traffic off older, less efficient CDMA technology, adding capacity and again cutting costs. On a less positive note, Sprint has taken another step away from partner Clearwire CLWR, saying only that it will sell devices that use the Clearwire network through 2012. Sprint seems to be willing to let Clearwire fend for itself. If Clearwire fails, we view it as a missed opportunity for Sprint. To complete Network Vision, Sprint expects capital spending will total $10 billion during 2012 and 2013, which is right in line with our expectations. However, that spending will be more heavily concentrated in 2012 than we'd expected, falling rapidly thereafter. Sprint reconfirmed that it expects the net benefit of Network Vision will total $10 billion-$11 billion through 2017 and added that it believes margins will expand 4-6 percentage points in 2014 directly from the project. Based on figures provided, we believe Sprint expects even greater margin gains beyond that. I n addition, the firm expects another 4-6 percentage points of margin expansion as a result of improvements in the core business, such as lower customer churn. Taken together, these figures imply greater margin improvement than we had forecast. However, the firm indicated that all of the above figures exclude any impact from the iPhone and then declined to provide any detail on how the device might affect profitability in the near term. This issue is critical because Sprint will need to raise additional capital to meet debt obligations as it works through Network Vision. Not knowing how much money the firm will need and when creates additional uncertainty that is unwelcome, given current market conditions. In addition, the iPhone issue raises the longer-term question of whether or not margins have shifted structurally lower as a result of the emergence of dominant devices--the iPhone today and perhaps a Google GOOG Android phone tomorrow. |
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HenryTo
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| Posted: Wed Aug 31, 2011 1:16 pm Post subject: |
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Sprint up 8% today on the DOJ's move to block the AT&T and T-Mobile merger. The Feds finally get a backbone.
| Quote: | Sprint Shares Surge on AT&T Setback
Sprint Nextel may get its way -- or at least that is what investors are thinking.
Shares of the nation's third largest cellular carrier were up nearly 8 percent in early afternoon trading on Wednesday, after the Justice Department moved to block AT&T's proposed merger with T-Mobile USA.
Sprint Nextel has been a vocal opponent of the deal from the outset. At an industry conference in March, its chief executive, Dan Hesse, criticized the merger, fearing it would hurt consumers. A week later, Sprint formally objected to the deal and called on regulators to block the acquisition.
"The wireless industry has sparked unprecedented levels of competition, innovation, job creation and investment for the American economy, all of which could be undone by this transaction," Sprint said in a statement in late March.
Sprint has reason to be concerned about the potential merger of AT&T and T-Mobile. If the deal went through, the merged company would have nearly 130 million subscribers, leaving Spring a distant No. 3 player with about 50 million customers.
It has been a tough position for Sprint.
Mr. Hesse has made some improvements during his tenure. He has invested in customer service and bolstered the product lineup, including signing an agreement to sell the iPhone 5, the next version of Apple's popular smartphone. Such moves have helped keep customers from switching to other carriers.
But the company continues to struggle. In the quarter ended June 30, the company lost $847 million, compared with a loss of $760 million the period a year earlier. Meanwhile, shares of Sprint are off more than 35 percent from their 52-week high in June. |
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HenryTo
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HenryTo
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Posts: 11742
Location: Los Angeles, California
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| Posted: Thu Jul 28, 2011 2:10 pm Post subject: |
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Morningstar on Sprint's 2Q earnings:
| Quote: | | Sprint S reported relatively weak second-quarter results, with margins taking another step back. On the positive side, growth continues to accelerate on steady improvement in customer loyalty. Management reiterated expectations for the year with respect to customer growth and profitability. Sprint also announced an agreement with wireless startup LightSquared that promises to generate cash for the firm over the next several years and provide additional network capacity. Overall, the quarter was a setback for Sprint, but we continue to believe the shares are undervalued. Sprint continues to attract new customers to its core brands while improving customer retention, but the cost of doing so increased during the second quarter. The firm moved to an instant, rather t han mail-in, phone rebate program in the second quarter, causing a sharp increase in subsidy costs. In addition, the cost of providing wireless service increased year over year as a percentage of sales for the first time in five quarters. We have been expecting Sprint to gain additional leverage on this cost line, but that clearly didn't happen in the quarter. Management did call out a number of dispute settlements that hurt margins during the quarter. Taken together, the margins in the wireless business dipped 3 percentage points sequentially and versus a year ago. Management continues to expect to post flat EBITDA, excluding the cost of its network upgrade program, for the full year. To do so at this point will require the firm to improve margins over the balance of the year. It sounds as if management expects some of the subsidy spending seen in the second quarter will subside. |
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rffrydr
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Joined: 30 Oct 2005
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| Posted: Sun Mar 20, 2011 2:45 pm Post subject: |
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Sprint pretty much needed that T-mobile deal (which really wasn't practicable). The little iPhone pretty much was the catalyst for this long necessary consolidation. But ATT is known for it emasculation of Android (  ) and the rabble is not happy:
| Quote: | How unfortunate. The likes of T-Mobile's MyFaves, Sprint's AnyMobile, T-Mobile's successful family plans, Sprint's WiMax, T-Mobile's HSPA+ - were all to remain competitive. In one way or the other, it forced ATT and VZW to lower their pricing, or provide better service. It's no surprise that the networks with the first "4g" were the smaller carriers. Anyone truly think that ATT would be deploying HSPA+ now if T-Mobile hadn't begun deploying last year?
Without competitive national carriers, we'll be stuck with supermassive ATT, supermassive VZW, and plummet down to the prepaids with no coverage. Sure, they'll "compete" in the LTE field. Just like that Exxon "competes" with that Shell down the street (reality check: they don't actually compete - they collude).
Fan-freaking-tastic. Talk about the beginning of the end for wireless competition
in America. |
HowardForums
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HenryTo
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| Posted: Thu Feb 10, 2011 2:00 pm Post subject: |
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Morningstar on Sprint's 4Q earnings:
| Quote: | Strong customer growth improvement at Sprint Nextel (S) provided a pleasant surprise during the fourth quarter, but the heavy cost of subsidizing smartphones continued to pressure margins. We don't expect to change our fair value estimate in the wake of the firm's earnings release.
The Sprint brand is performing very well. The firm added 519,000 Sprint-branded postpaid customers during the quarter, besting rival AT&T (T), something that hasn't happened in at least five years. Sprint's share of gross postpaid customer additions versus AT&T and Verizon Wireless (VZ)(VOD) resumed moving higher after stalling out in the third quarter, and Sprint customer defections continue to decline. Most impressive, the firm announced that more customers switched to Sprint than left for another carrier for the first time in company history. The legacy iDen business continued to struggle during the quarter, but the Sprint business is performing well enough to fully offset this loss, as the firm added 58,000 net new postpaid customers. The prepaid business also gained momentum during the period, adding 646,000 net new customers. With a small improvement in postpaid revenue per customer, wireless services revenue grew sequentially for the first time since mid-2007. Revenue growth across the firm hit 5.5% year over year, slightly ahead of our expectations.
Revenue stability hasn't helped profitability, though, as the operating margin, excluding depreciation and amortization expenses, dipped below 16% from 17.5% a year ago. The cost of subsidizing phones continues to take a big bite out of profits, and Sprint stepped up marketing spending during the fourth quarter. We estimate the firm sold around 30% more devices than a year ago and about 5% more than the previous quarter. Wireless equipment subsidy cost hit 18% of wireless service revenue during the quarter, up from 16.6% the previous quarter and 15% a year ago. Fortunately for Sprint, the industry seems to be recognizing the need to slow customer upgrades now that a significant portion of customers are using smartphones.
Sprint turned in solid free cash flow during the fourth quarter. By our estimate, the firm generated $2.4 billion during 2010, or about $0.80 per share. Sprint is now sitting on about $5.5 billion in cash and investments, and net debt dropped more than $900 million during the quarter to $14.7 billion. The firm will have a busy 2011 as a planned network upgrade begins, but management expects to continue generating positive free cash flow during the year. |
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rffrydr
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| Posted: Thu Mar 25, 2010 8:37 am Post subject: |
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(cont'd).... I've been using the jesus phone, jailbroken on t-mobile and it's still my go to portable device. Apps like bloomberg, WSJ, and various google integration, like reader, youtube make this the ideal device for getting the info I want. But the HD2 (with, key, Opera browser) and HTC "Sense" which put the window mobile into the background, really becomes a computer. With this phone I seek things out. With this phone I tether easily to the laptop. With this phone I can access broker and all other windows-based platforms out there. And with this phone Flash works Steve Jobs be-damned.
This phone with favor males who's hand's are bigger. Not that it's too big--but we have big enough hands to still make this phone seem small. Since the Razor, thinness is magic.
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rffrydr
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| Posted: Thu Mar 25, 2010 8:26 am Post subject: |
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I got mine yesterday with t-mobile and I gotta say this phone surprises to the upside. My god, you can finally watch tv on a phone! Now I can turn it off.
Progress? This country is pathetic--no matter how positive a spin you put on the Broadband buildout plan. These phones are adaptable. The droid ROM flash is already being worked on but the Sprint option has many a mouth watering. There's a lot of Sprint "4G" just waiting to turn the lights on.
These frequencies will converge and these phones will be adaptable. Sprint's best bet is that there just isn't the bandwidth to go smart everywhere anytime soon (see Below)and no solution on the horizon. WiMax could very easily find a second life because of this.
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diesel
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| Posted: Thu Mar 25, 2010 3:30 am Post subject: |
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The problem with the HTC EVO 4G is its CDMA/WiMax chipset. There isn't a market outside the US for this phone given the rest of the world is taking the WCDMA/LTE route.
The iPhone remains the smartphone to beat!
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HenryTo
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| Posted: Thu Mar 25, 2010 12:26 am Post subject: |
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Look for the Sprint HTC EVO 4G to be the toughest competitor for the iPhone 4G (the latter of which will be released in a few months):
http://www.dailytech.com/article.aspx?newsid=17960
| Quote: | | When it comes to the specs sheet, many people thought that the Google Nexus One had just about every smartphone on the market beat. The HTC EVO 4G simply crushes everything else on the market thanks to a 4.3" (480x800) TFT LCD, 1GHz Snapdragon processor, 512MB RAM, 8.0mp camera in addition to a 1.3mp front-facing camera for video conferencing, GPS, digital compass, stereo Bluetooth, Wi-Fi, mobile HDTV, and HDMI (720p) output. When it comes to storage, the HTC EVO 4G has 1GB of storage built-in and can support up to 32GB via a microSD slot. |
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rffrydr
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| Posted: Sun Feb 22, 2009 6:04 pm Post subject: |
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T-mobile rolling out $49 all-you-can use--now we have the pain.
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rffrydr
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HenryTo
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| Posted: Tue Jul 15, 2008 11:59 pm Post subject: |
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Now, SK Telecom from South Korea is rumored to be making a bid for Sprint, although it is unlikely given that SK is half the size of sprint (by market cap) and given the potential size of the deal:
http://www.technologyreview.com/Wire/21090/?nlid=1211 |
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HenryTo
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| Posted: Sun May 04, 2008 9:43 pm Post subject: |
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Deutsche Telekom rumored to be making a bid for Sprint:
http://online.wsj.com/article/SB120994107407665981.html?mod=yahoo_hs&ru=yahoo
| Quote: | Deutsche Telekom's deliberations are at a preliminary stage and management may very well turn away, these people cautioned. If a bid is launched for Sprint Nextel, which has a stock-market capitalization of $22 billion and is the No. 3 player in the U.S. wireless market, it could still be weeks, or even months, away, they added.
The potential bid is being considered as the former German monopoly scouts for acquisitions in countries outside the German market, where it has seen its revenue shrink in recent years amid rising competition and falling prices. Last year, it booked just over 50% of its revenue outside Germany for the first time.
T-Mobile is a distant No. 4 in the U.S. wireless market, with 28.7 million customers at the end of December. It invested heavily last year to acquire new wireless spectrum and is eager to expand. By acquiring Sprint Nextel, it could roughly triple its client base in the U.S. and surpass leaders AT&T Inc. and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC.
Bonn-based Deutsche Telekom increasingly is focusing on its international wireless businesses as its domestic fixed-line services slump. Its wireless businesses generated more than half of the company's €62.5 billion ($96.3 billion) in revenue and €19.3 billion in operating profit last year.
The U.S. has been the biggest growth engine. T-Mobile USA added 3.6 million customers last year, boosting its revenue to $19.3 billion from $17.1 billion in 2006. In February, Deutsche Telekom completed its $1.6 billion acquisition of U.S. carrier SunCom Wireless Holdings Inc., which had 1.1 million customers.
The German company has a stock-market capitalization of $79 billion and money to spend after whittling down its debts in recent years.
Deutsche Telekom has looked more closely at Sprint Nextel since the U.S. company's share price has fallen below $10, far below its 52-week high of $23.42. The German company also may opt to strike while the euro is near record highs against the dollar, according to people familiar with the matter. |
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