I first bought Clearwire at $1.52 on its way down to 89 cents. I kept adding to my position and did not sell until $5.00. Cramer first weighed in on Clearwire in the low $1 range while it was going up - he repeatedly told people to NOT buy. Only at the end of its run did Cramer advise people to buy. He is a shill for the interests of bigger dogs. I was going to buy Sprint at these levels but I feel CERTAIN now is not the time since Cramer is advocating we buy. He’s helping his buddies get buyers. I like the potential of new Sprint with Masayoshi’s aggressive determination and will to build out the largest LTE network in the world. But… since Cramer is now saying buy… I’m waiting.
I would not base my investments solely on Cramer's recommendations anyways but you may miss the low entry point if you wait. He maybe correct here .
Stock price is right where it should be after the merger and stock dilution, so if you run the numbers you will get $5.65 -75 range. Now big boys are prepared to act and load up so Monday will be an interesting trading day going into a earnings announcement on Tuesday.
All the positives need to be shown on the conference call on Tuesday and I believe Son and Hesse are prepared to make a strong case for the new company.
Sentiment: Strong Buy
This looks like a long term period to buy almost regardless of surrounding circumstances.. however, 'follow the trend' in investing needs a trend to follow. Just as it can make sense not to miss out on a period that may prove to be reasonably near a low in the 3-10 year future trend, it might be a year before the move starts.
What does the market say, or for that matter, does the big mouth of investment world Cramer have to say? Actually, Cramer mostly makes sense this time imo: he says S may get hit because quarterly results may look bad. The market is funny in that if expectations are built up to expect good or bad stuff to happen and the results, in total, are interpreted as not as bad or better than that, the stock can go higher as investors look past that toward better times perceived ahead. Of course, the opposite can happen.
Its possible to miss a 1+ year slide to a lower value and then see a move up similar to what happened to Softbank's stock following the acquisition of Vodafone JP. SB is larger and more diversified and Sprint can be said to have done much to prepare for a turnaround to shorten or prevent that, however, that is some history worth noting. The majority of large acquisitions across borders experience a period of adjustments as the management and broader business is realigned and the cultures mix. Sometimes they never do, resulting in festering differences and eventual break out of the acquired unit. In this case, I think Sprint and Softbank are a good fit despite the obvious geographic and cultural differences. What helps bridge the gap is the degree to which Sprint needs infusion of capital, lower costs, leading edge network technology and deployment experience, device 'critical mass' leverage, and the strong alignments of Son/Softbank and Hesse/Sprint and their BODs. "Necessity is the mother of invention" and is also the mother of good mergers.
This is my 2nd most anticipated conference call in my stock portfolio. ALU is the first. I agree with you that the big boys will be buying on Mon and Tue in anticipation of a Sprint fire sale. This is there only time to act without pushing the price too high. Mark my words.
I couldn't agree with you more.......
Cramer is right in saying that Q2 earnings is going to be horrible, but hinting that there will be a quick turnaround in Q3 is way off. They may go from Horrible in Q2 to Very Bad in Q3, but don't expect much improvement until 2H 2014 at the earliest.
Cramer saying that Sprint doesn't have a National Network today is also correct, but again the time and money it will take to build and earn the trust from consumers/business that left or are leaving Sprint will take years.
Why does Cramer think the "Deep Pockets" of Softbank is going to allow Sprint to do things they haven't been able to do. If I'm not mistaken, wasn't Softbank recently downgraded to Junk Status as they are extremely levered. I don't see how Softbank is going to be able to give any more money to Sprint at this point and because of Ergin, Sprint didn't get as much as they were originally planning as it went to the shareholders.
Lastly, I'm tired of hearing people preach of an inevitable Sprint/T-Mo merger. First, neither has the money. Second, the CDMA & GSM networks aren't compatiable and would cost even more money to integrate.
I agree that Cramer is just trying to save Sprint from everyone giving up on it and heading back to $2 range.
Softabank will be getting tons of money from Alibaba IPO. They have the spectrum now. I expect a big price cut when the network is up and running for its customers. This is where the other carriers can't compete.
Cramer is a focal point for discussion.. not a genius in understanding technology or, apparently, timing. However, a basic premise for thinking that Sprint can show improvements going forward is not wrapped up only in gains of marketshare: a major contribution will be lower costs as Sprint, for the first time in its history, arrives at having a fairly homogenous set of networks that use a common IP based network architecture. A way to look at that is from the perspective that Sprint has suffered under the weight of operating diverse networks with their own supply chains for infrastructure and devices. iDEN, WiMAX, even CDMA have been minorities as convergence has taken place around GSM/3GPP. CDMA is now rolled into the same migration path to LTE-Advanced with support of the same basic supply ecosystem. And convergence has taken place to a large extent in use of spectrum. While the US 2.5-6GHz band being a bit of a hodge-podge licensing scheme, it still aligns with international/ITU/3GPP band plans and common use across over half of the world's population... that is once it becomes deployed to cover them. The support of Japan, S. Korea, China, US, including, or course, close alignment with Softbank, should lead to a rapid price competitiveness for TD-LTE enabled multi-mode devices.
That and other factors that shouldn't need repeating should shake out of the situation as being almost unavoidable... unable to screw up. Thus, one way to look at Sprint's way forward is walking onto the same competitive field that Verizon and AT&T have benefitted from.. cost and ease of development and deployment benefits Sprint will get to partake that should result in higher margins at the same or ever reasonably lower marketshare.
Having said that: some margin improvement may come from supply synergies, operating efficiencies, lower access to capital costs, etc. , however other benefits will take time to accrue. You still have to 'build it (before) they will come'.
Cramer can only guess like everyone else. Sprint is still the same company and still has to build out it's LTE. It has more cash to do that but nothing else has changed as the already controlled Clearwire spectrum for years. The optimism is fading and now Sprint has to perform positively. Otherwise it is dead money at best and probably will drop lower until a real takes place.
what fool would ever think crammer is helping us....
a BUY recommendation from crammer is a wait to buy or an outright sell
a SELL recommendation from crammer is a buy the living crud out of it!
Frankly he is the an MM.. in my book.
Cramer is helping us and this thread proves it. He is wrong and he is right, like many. But what he does do is inform and promote debate as in this thread which helps the understanding of the market. Anyone is a fool to follow him blindly either way but he does expose one to a lot of stocks and ideas which then can promote DD. In this case, as I've been saying for weeks, I think he is right for reasons stated. And he promotes a much more reasonable discussion than those that blindly state that sprint will not go below 6 or 7.