VZ's taking dead aim at PTT hitting S where they're most vulnerable in their pathetic network, and now Att's taking them on at Best Buy. Hesse better get busy selling this company before there's nothing left to sell. And he may want to revise his dismal guidance even lower if he expects to ever meet or exceed a quarterly target. Maybe they can do a preferred stock offering with a 15% coupon and a one year out conversion option at $2.
If you can find my comments back in May-June when I stated that this stock is range bound and is heavily controlled by hedge funds who use a box strategy to make profits from writing options on this stock and from time to time burning average stock investors. They couldn't hold the range in the 9-10 so they moved it to 8-9 range. This will continue as long as they can get bozos to buy the stock hoping that someone will pay a dime for this worthless company. The book value is overvalued because the current telecom market is overcrowded with network capacity and the market is not willing to pay enough to even cover the sunk costs. Expect to see a major shareholder dilution through a forced preferred issue.
So the question is, how much bad news is it going to take before the money managers give up and this stock comes down to a reasonable price?
I thought for sure after the last CC and the warning on Q3 that this stock would be $6.50 ish. And it was headed there until they cancelled the stock sale, even if only temporarily.
Sprint can't take on more debt. Their capital ratio is terrible. Convertible offer in this market means that stock will be worth somewhere around 3-4 dollars due to a massive dilution and hedge funds who will assume bigger short positions in the stock by hedging with convertibles. Sprint is edging closer to Bankruptcy. If there are buyers out there, it is mostly likely be Verizon since they are also on CDMA but here is the problem: verizon so far has been reporting stellar growth figures at the expense of Sprint by taking more and more customers from Sprint. If they do buy them, it will mostly be for the customer list but that's where the double digit growth stops. So right now they are in a waiting mode. Sprint right now is too overvalued and they are waiting until it's worth somewhere around 10-12 billion which is roughly 4 dollars a share. A different outcome is to continue stealing customers away until there is nothing left but debt