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Sprint Corporation Message Board

  • billbrittain3 billbrittain3 May 18, 2014 12:49 PM Flag

    S - Long or Short?

    S has had quite a ride since last December, trading above $11.00 last December and below $7.50 just a few weeks ago. (S is currently trading at about $9.00 per share.) I can certainly understand why some might believe S is a great shorting opportunity. God knows, I wish I could have "timed" the market over the last few months. If Sprint announces that they will not make an offer for T-Mobile, shorts will win. However, if Sprint makes an offer for T-Mobile, shorts will lose and longs will be rewarded. If Sprint succeeds in buying T-Mobile, there will most certainly be a further significant increase in price.

    I believe that Sprint will make an offer for T-Mobile. I believe Son/Sprint/SoftBank would not make an offer if they did not believe that it would be approved by shareholders and regulators. Also, I believe it is common knowledge that Sprint and T-Mobile will not be able to compete with Verizon and AT&T on their own. They can only compete effectively if they are one company. I believe this will be the primary reason that Sprint will buy T-Mobile and it will be approved by regulators.

    Sentiment: Strong Buy

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    • S is trading above $9 because of speculation about a merger with T-Mobile. I believe there will be an offer before the end of July. I can't imagine that S is a good shorting opportunity. Not now.....

      Sentiment: Strong Buy

    • What a fool. Wrong on so many levels. I love your belief that shareholders would approve the offer. HUH????

      Softbank owns 80% of sprint. Of course if Son/SB make an offer sprint will go along. HUH???? LOL

      Thanks for our pps update. Knew you could not let it be.

      Not a great shorting opportunity with or without merger. I know you don't understand pps actin-====you've said so----but sprint fundamentals will move the pps up over time, with completion of NV, regardless of merger. But I now you cannot understand this concepot as you've stated.

      Sprint can compete better with scale of course. But if it executes on its vision, many subs will come to it, like they are with tmobile, on their own without the merger. So IMHO sprint can compete with the big boys IF it executes on its vision.

      Need a go further. You just have no insight in sprint's capacity and vision.

    • Short selling is not longs primary concern.. the stock is volatile because of narrow float and rampant speculation followed by sharp selling when realty proves less one-sided. The result of an announcement of a deal to acquire T-Mo is likely to be more volatility... up probably at first. However, my guess is that once the facts of how the deal is likely to work out is leaked out over time the stock will slide back from whatever precipice it reaches. Any deal will take ~two years from now to complete. It might be months before the FCC would get fully into the review process because they have so much else to deal with in the near future. Despite what the idiot Cramer says, it might still be months before Sprint-SB put forward a deal. I have been inclined to think it would come late this year or into next... after the 600 MHz auction might be a consideration so that the deal would not cloud Sprint's chances. A deal will complicate how the spectrum is considered in the screening process which will be complex enough without it. Sprint is a messy, complex situation that can be read to both positive and negative extremes... when the truth is it is going to take more clear headed dealing similar to that recently displayed and tons of follow through to change the laggard into a leader of networks and markets.

      I think they are doing more things in a 'right way'.. or a way that holds together consistently as part of an overall strategy. That said, this is digging their way out of the current pit... shovel full by shovel full.

    • Unfortunately S has become a "headline" driven stock with longs and shorts placing their bets accordingly. I wouldn't necessarily want to be short, but am not completely comfortable with my long position either as it's a bit unnerving to potentially wake up one morning and realize you're screwed by a headline event.

      I think well see support in the high 8's low 9's as long as all the telecom/media consolidation rumors persist. Once that dies down in a month or so S will either have become a player or an also ran dependent on fundamentals which right now don't look so good.

      • 1 Reply to roadglide2459
      • So what you are saying is a $9 company buys a $30 company the share price will drop to $12?

        I do not see that happening with all that would be involved with this type of merger.
        Customer base jumps 100% over night
        Spectrum ownership goes up .
        Build out of at least 30% overnight in untapped areas.

        Last but not least I do not see Son excepting a $3 jump on what he has invested in on both companies even on the day of the merger.

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