I have read many of the countless posts and articles about Sprint, both positive and negative. Mostly, I focus on the price of the stock as an indicatior of how well Sprint is doing. If that were my only indicator, I would have to say that Sprint did very well until about the end of March, and not so well since then. I would also have to say, based on the price of the stock, that Sprint has done poorly in the last year. Obviously there is more to Sprint than the up and down movement of the stock.
I LIKE SPRINT, AND I BELIEVE IN THE COMPANY.
1. The most important reason is the revenue, $8.7+ billion in the first quarter. That means, based on 4 times the first quarter, that Sprint will have revenue of over $35 billion in 2012.
35 BILLION DOLLARS IN 2012 !!
2. Sprint has spent a great deal of money to build their network. This has cost them a great deal of money and they continue to have a great deal of debt. However, "it takes money to make money". Sprint has its eye toward the future. (Institutions do not loan that kind of money uless they expect to get it back.)
3. Sprint has the iPhone. The iPhone is the future and, regardless of the cost, Sprint had to have it.
4. Sprint has a great "unlimited" plan. AT&T and Verizon do not. I have the plan, and I like it.
5.S is trading a the bottom of its yearly range. Of course S is risky, but the potential for gain is enormous.
I realize that the "bears" are "winning" now. I realize that my May 2.5 Calls are nearly worthless. However, that does not mean Sprint will fail in the long run. (You can bet that the "bears" did not forsee the recent rise in price from $2.10 to over $2.90.)
I BELIEVE IN THE LONG-TERM FUTURE OF SPRINT.
I will probably buy more S. I will definitely buy more options with longer expiration dates.
unfortunately it costs Sprint $38B to bring in that $35B in revenue..
$38 BILLION DOLLARS in 2012
Anyone can buy high and sell lower...I could go buy $50 Prepaid Visa Credit cards and sell them online for $25 and could pull in BILLIONS $$$$$ in revenue...
I can't argue that Sprint has a lot of debt and is currently losing money. (who could??) However, the cash is being used, in part, to improve their network. In time, those costs will lessen, the network will be completed, Sprint will pay back the debt, Sprint will continue to grow, and Sprint will start making a profit. That is why I believe in Sprint. Those who disagree, believe the opposite.
This week should be interesting. After last week, I have no idea what will happen....
No one, me including, is saying there is no risk involved with Sprint. I believe the potential reward is worth the risk. Last week proved just how "risky" S is, S moved from $2.36 to $2.60 and back down to $2.36. My May 2.5 Calls went from $.05 to $.15 and then back to $.04.
In spite of it all:
I CONTINUE TO LIKE SPRINT !!