Sprint will be the #1 wireless provider in 3 years
Sprint is preparing for the future with the fastest network and best selection of phones. They already have the best rate plans and customer service. They will turn a profit in the 4th quarter and i see this stock over $10 a share by this time next year. I think im gonna buy a new lexus with all the money i make on this stock.
They have brought on many new customers with their price plan. It's a good price plan but I know so many who would rather pay a little more and not have so many dropped calls, can rarely connect to the internet, text messages not going through. The service is so bad. They have to upgrade and they better do it very fast. I was out last night and we were actually talking about the lack of service. In our area, they promised many months ago, that it would improve and it's worse now. I hope they get the money to rebuild.
Turn a profit? This is NOT what the CFO said - he said for the next 2-4 years sprint will be forced to borrow as they will be spending much more than they would be bringing in. Read the news release from their vision announcements.
If Sprint borrows money it is for a capital expense. That is typical.
Sprint's EBITDA will still be going up and may go up sufficiently to show a gap profit.
It is normal to borrow money to make an investment in capital assets, e.g. a network upgrade. However the corruption in Wall Street and in between stock manipulation at major firms and rating agencies could be responsible for the so called downgrades.
Since you are Wall Street professional how can you not know that they are spending less than they are brining in. The additional spending is a CAPITAL expense and is quite normal in corporations in America and across the world.