This is old news already but Oppenheimer recently downgraded LEAP to market perform from outperform. They seem to be comparing LEAP's price action to PCS, which I think is silly. They also think the S/SB/CLWR 3-way plus DISH potential will lessen the demand for LEAP:
"UPDATE: Oppenheimer Holdings Downgrades Leap Wireless International to Perform
3:05p ET December 14, 2012 (Benzinga)
In a report published Friday, Oppenheimer Holdings downgraded its rating on Leap Wireless International (NASDAQ: LEAP) from Outperform to Perform.
Oppenheimer Holdings noted, “After more closely assessing the industry implications of a Sprint/Softbank/Clearwire merger, we are downgrading LEAP from Outperform to Perform. We believe Softbank's strategy is to use CLWR and most likely DISH's massive spectrum capacity to roll out a high-capacity mobile network to support differentiated applications to stabilize share and grow ARPU. If this is the case, this lessens the need to buy LEAP over the next 18 months. Furthermore, since our Oct. 11th report upgrading LEAP (at $5.90) and downgrading PCS (at $12.04), the valuation discrepancy has widened, with LEAP outperforming by 30%. We also think CLWR gets $3.25 a share at most; it looks unlikely for shareholders to get more than that given their leverage is limited. Please see Exhibit 1 for a summary of our LEAP rating and estimate changes; we've also attached our updated LEAP model.”
Leap Wireless International closed on Thursday at $6.75."
I am now completely out of LEAP. I sold my remaining shares on the downgrade. Was looking to get out any way. Options expiration was last Friday. I wrote December $6 puts so I keep the premium with no obligation to buy shares.
I have a feeling LEAP sales may be decent this quarter with the Samsung Galaxy 3 and financing options. I will consider buying LEAP again if the options premiums come back.