We will now see how far a pink t-shirt and lots of mouth gets a fellow. You knew it had to end like this. JMHO
1) T-Mobile under the current business model is not profitable. They are gaining subscribers at an operating loss.
2) Bidders are probably raising the potential price of acquisition..........none of which looks likely.
3) If successful, the buyer will pay a premium for a model that doesn't generate profits. See#1
4) In light of the above, both potential suitors claim they will slash subscription costs. Some how they will find a way to service the acquisition costs( debt ) at the same time they are lowering subscription prices on a carrier that's already losing money ...T-Mobile. Forget capex for infrastructure and increasing service.
5) One supposes that T and VZ cannot figure out how to manage this threat competently and will be damaged by this gadfly concept.
I'm am not even going into regulatory issues.
Given this, please tell me what am I missing. Does any of this make sense?
These are just my humble thoughts and questions.
Let me be honest. I do not believe T-Mobile can be profitable. Not now , not ever. Aside from all the hyperbole generated by senior management , they rarely discuss profitability. Why? Because they know they cannot place the company in the black on operations. Do you believe the company will ever make money? When?
Just my humble opinion. Do your own due diligence.
All the buzz, buyout rumors, and pink t-shirts will not turn a profit and without that you got nothing. They are giving away their inferior product at a break even point , or loss, just to increase subscribers and make news. I believe it is becoming apparent the king has no clothes. Just my humble thoughts and opinion.
Forgot my disclaimer for the above. .........."Just my humble opinion". There.
Iliad cannot make the deal happen because they are already overleveraged , and even should they win tmus the new entity would lack synergies and the efficiencies therein. Competing against this Frenchy on American turf must be an ATT / Verizon wet dream.
Happy Jappy won't work because regulators WILL NOT pass off on it. If regulators even hint at merger, T files the mother of all lawsuits and ties deal up in federal court for years before winning.
Tmus must make profits on a "go it alone" basis and all the pink t-shirts in the world don't substitute for infrastructure and capital. Just my very humble opinion. Do your own due diligence.
the business model doesn't make money now. The only reason tmus made money last q was because of a spectrum lease to vz. Cutting prices will increase blood letting . This is not going to end pretty.
Was in Raleigh NC, and a Durham NC WFM store over last 24 hrs. Both had 10 registers open and about 5-6 customers at each register. Stores were full. Spoke with several employees , they say business is very strong.
Stock is down about 50% from peak. Incredible cash flow . No debt. Now is when the big money is made..............but not by wussies. OH.... and the best pork tenderloin on pasta with a light marinara sauce I have ever tasted.
oh yes.......plus it removes sting 4 times per year. And with an entry point average about $47.45 , there ain't much sting anyway.
BTW, not to worry about TMUS whether they sleep with the Happy Jappy or the Frenchy Iliad. Gadflys all. jmho
One wonders what force, exogenous or otherwise could cause such a calamitous crash from an already undeserved low point. The company is making more money than ever, growing about a new store per week, has one of the most loyal customer bases in business and is essentially debt free. I'll take my chances.
Always the possibility of leakage prior to a big report but fantasy to believe a message board was part of it.
Concur. Store in Raleigh NC had 10 registers open , 5-6 deep at each register , 4:30 on a Wed. afternoon. What a fad.
There's nothing wrong with WFM . In the perpetual 24 hr news cycle , I guess you gotta say something to fill in the air time and make it look interesting. I say but WFM.