It is VERY obvious from the comments of Son and Claure and the actions taken thus far that SB is going to take most all costs out of Sprint, streamlining it to be a cash cow for Softbank. This includes the 2.0+ billion in run rate cost cuts, the handset leasing company (MLS), and the soon to be detailed Network Equipment Lease Co. If you tally these items up you realize that Sprint will save 1.5 Billion per quarter or more to FCF for starters with additional savings from debt service as they pay off the long term corporate debt. Son was very specific in his 6/30 quarter ended Softbank cc that he expects Sprint to be a larger cash driver for Softbank than Softbank Mobile, which creates 4 billion per year in FCF. And THAT means a re-institution of the dividend, 85% of which will flow to SB.
Sprint is cutting costs, the CFO has called these "'well-advanced", this is a given, and will save 500+ million per quarter, MLS will allow Sprint to pocket the balance of the 3.6 Billion dollars that was sitting in PP&E, and save 550+million per quarter, Equipment Lease Co will add to the cash pile....anyone spreading fear about the bond-market and maturity at the end of the year is just a short-shill, the CFO has talked about all this recently in several conferences.....I swear analysts and media don't even look at what is occurring, rather it appears someone pays for a story or an opinion and they get what they paid for, certainly appears that way.
Look, Sprint needs to add subs, they HAVE been adding subs, they need to add more, if Claure's tweets are to be relied upon, if the anecdotal reports such as via channel checks or comments made by T-Mobile to the Citi-Conference are correct, Sprint had a good quarter in subs...there IS a QUANTITY of SUBS adds that would cause the market to say WOW....2 million, 3 million, 4 million, pick a number.......and remember Sprint is adding subs while NOT relaxing credit standards...highest ever prime mix......actually Sprint now controls its own destiny...haters and paid shills and those with interests in competitors can spread all the nonsense they want....they are here regularly doing just THAT.....it will not matter one iota.... and ultimately they will be SILENCED big time by Sprint adding customers......THOSE customer decisions are the only opinions that REALLY count.....
Dear Basher-rat, you do realize that the Sprint public-float institutional ownership is ABOVE 100% of the public float, which means that the institutional demand is GREATER than the WHOLE public float. So while basher-rats gather to squeak-squeak their cage-wheel about no demand or support for the stock, THAT is simply not true. In fact the demand is SO great for the shares that institutions own all the public-float shares there are. And even beyond that, institutions have been fortunate or perhaps clever enough to get additional shares via shorts who are fond of borrowing them to sell, hence allowing institutional accumulation above 100% of the public-float.
One could in fact argue that the stock moving down has only been a convenient means for allowing further accumulation by institutions who seem quite content to buy the shares from shorts at these lower prices, essentially using the short shares as a source of liquidity that otherwise would only exist except at a much higher price point, noting well that there is factually ZERO liquidity in the public float itself (since institutional ownership is above 100%).
In the future they will call this the Great Rat Trap, and your Great-GrandRats will read about it and squeak sadly of how GrandPappyRat was caught and cost generations of Rats their cheese....
MarceloClaure @marceloclaure · 20h20 hours ago Mission Hills, KS
Per Nielsen, fastest LTE downloads nationwide ...and we are just getting started and half the price. WOW
Sprint is becoming a real special circumstances play. Think about this. The public float is about 650 million shares after the recent Softbank buys. The institutional holdings alone are greater than 650 million, greater than 100%. One could say the shorts are basically providing additional liquidity in excess of the 650 million public float.
Now, as shorts have ramped up the short interest (now 171 million shares) longs have basically said we'll take the other side of that trade, in other words the long side demand for the shares is actually greater than the public float PLUS the 25% short interest.
Son touched on this in a way in his recent SB cc, when he mentioned that in the past SB stock had come under attack by Hedge Funds shorting SB stock, and one suspects that the 171 Million short Interest has had a similar goal with Sprint. However, with all the shorting, longs absorbed those shares, and many of those shorts, based on when the positions were initiated evidenced by the short interest reports, are not profitable even at the current low price. And shorts have a real liquidity problem in that the length of time to cover 171 million shares without bidding up the price, is going to take some time. One suspects they are hoping to capitalize on some negativity, but frankly the latest news from Sprint has been very bullish (no matter what basher-rats say).
Shorts have to be thinking, has this been a set-up, the short interest is in pretty deep, a crowded trade, and the liquidity just isn't there, and tick tock time is going by and Sprint is gaining accolades for the network, gaining subs, improving across financial metrics, and quickly restructuring to make Sprint very profitable indeed. Shorts have to be wondering if they've been HAD. A good bear trap would obviously keep them interested, they get extended, and whoosh. It's a very interesting circumstance.
Basher Lie #1 - Sprint is being crushed by their own corporate bonds
First of all the statement itself is hyperbole designed to create fear and negativity using the more general negative backdrop in the corporate bond market, in other words it's easy to piggyback on some macro news and makes the LIE seem more credible. Sprint corporate bonds already issued are bought and sold on the secondary bond market, they are not traded by Sprint, if the long-dated debt such as coming due in 2023 is sold by one hedge fund to another at a discount, the transaction doesn't involve Sprint, doesn't cost Sprint money. Now it is valid that if Sprint were to raise NEW debt they would pay a higher interest rate based on the corporate debt market climate, but Sprint has already said they are NOT tapping the corporate debt market anymore. End of story. They are paying off debt not raising more
To listen to the bashers, and this is so pervasive it could be it's own second LIE, that Sprint has no cash with which to pay off the debt. This is just patently FALSE. If one looks at the page 16 of the recent "Quarterly Presentation", Sprint provides a graphic presentation of the liquidity, versus the debt maturity at the end of the year. There is 12 to 15 Billion in liquidity from current (6Billion+) and future sources (6Billion to 9Billion) versus 3.7 billion in debt due end of year. This has been discussed at length and in increasing detail by the COB Masa Son, CEO Clare and CFO, in the 3 recent earnings conference calls and 3 CFO appearances.
When you see bashers saying Sprint will default or go bk, or is running out of cash or any of the 10 different ways they state this LIE, recognize what it is, a LIE, fostered by a de facto cabal of ID's spreading negativity because the posters have other interests such as being a shareholder in AT&T, T-Mobile, VZ or work for same or in some limited instances being paid to post. It's despicable. LIE #1 debunked.
this message board is filled with people with interests in AT&T, VZ, T-Mobile one way or another, they are here to bash the stock with lies and fear mongering....the truth is they themselves are AFRAID...because fact is Sprint is doing really great...Network, plan to pay down debt, subs adds........that's the REAL bottom line TRUTH...Sprint is winning and ALOT of people don't like it.....
Just a comment on the sentiment, to highlight how negative the sentiment has become. Media out that Sprint can save 250 million dollars per quarter in just ONE of many areas of its business. And the reaction is essentially "such a problem"....
Look, it's BETTER that Sprint is ABLE to find 2.5 Billion in cost cuts than NOT ABLE.......the perspective is so OFF on Sprint.....and hence a buying opp......
Do your own DD, realize the volatility.....the last 3 Softbank and Sprint CC's are just loaded with information...loaded.....
look, if you want to value Sprint at 1/5th the balance sheet spectrum value...well ok by me....yippee for you......see the problem with all you basher-types is do you never get in the stock......it was in the low $2's a few years ago (and the company and network is in WAY better shape now, it INCLUDES clwr assets now....it didn't then, just an aside, but Sprint gets no credit for THAT).....and the bashers at that time were calling for much lower and bk, same stuff......it's ludicrous because the stock ran up and to the merger after that then up to $11.....and the bashers never participated in that....and now want to chide any longs who are now underwater and "missed out"......hey, hate to point out the obvious, all the bashers "missed out".....and also, if you look back at the timing of people like Cooperman, they were NOT out at $11....then rode it back down and bailed in the approximately 5 to 7 range......
look, my opinion remains, Sprint has massive trapped value in the spectrum, network, ongoing enterprise, relationship with Softbank......they are working on realizing that value...the progress toward that is evident...saying the price somehow justifies negativity, is nonsense as a "thesis"....the other side is always it's just more undervalued......better buying opportunity.....you need a better thesis , because frankly the bashers don't have a thesis
total nonsense, Sprint is THE single most undervalued big brand name company in the market.......start with the fact that it is selling now at about 1/4th of its spectrum value...giving NO value to the 32 billion in revenue stream...a revenue stream that does not produce wild profit ONLY because of the inefficient structure....Masa Son said exactly THAT...saying that Sprint can throw off more FCF than Softbank Mobile which produces 4 Billion per year in FCF....and Softbank Mobile has less revenue than Sprint......again, it's about efficiency.... and THAT inefficiency is EXACTLY what is being remedied at this moment with 2.5 billion in run rate cost cuts......plus the Handset Lease Co and Equipment Lease Co benefits complements of SB ....frankly I hope it goes lower, I will buy more.....I will add I find it deplorable that people come here and LIE about the company and fearmonger....all so they can buy lower or their masters can cover......karma is a beeeatch
The current short interest at over 200 million and the fact that institutional ownership is now ABOVE 100% of the public float is all VERY telling. It says the shorts have pressed the pedal down and the institutions have said, sure we'll take the other side of those very low-price short sales. This has all the makings of a huge bear trap and potential squeeze. Shorts are in deep here and it's hard to imagine real longs selling at these prices, so where are the shares coming from for them to cover, as noted institutions are clearly demanding the stock, how will they cover 200 million shares, basically a third of the public float. Don't forget Son can still buy more, about 50 or 60 million by my calculation.
One issue not well discussed is the all-important issue of scale and economies of scale, being overlooked in all the talk of cost cuts and Sprint's newfound network prowess. Remember, the first-in revenue essentially covers fixed costs- op-ex and cap-ex needed to establish the business as a going concern and sustain it. In a business like telecom, this means all the costs of securing the spectrum, putting the network and other structures in place, and having the sales, service, and executive personnel all in place, these cost are covered by the first-in revenue.
One can easily see that after the business is so established, that more customers can be added with very little additional cost, the last in revenue becomes the most profitable. This is one BIG advantage Sprint has since a large cost in any telecom is Spectrum and Sprint has a wealth of Spectrum. Note the Wells Fargo analyst comment recently about Sprint Spectrum and how the other carriers due to spectrum shortage will be operating with one hand behind their back, they are going to have to buy more if they want to expand.
But let's look at Sprint, let's say that Sprint is able to add 10 million customers, that's not unreasonable that they could add that number within a few quarters or more. And let's say each customer is paying $40 per month as a conservative number, that is 400 million per month of revenue, or 1.2 BILLION dollars per quarter. And the fixed cost are essentially all covered. So you can see just how profitable Sprint CAN be, this is why the quality of network is SO important - remember bashers are looking at a snapshot and don't see the big picture of the turnaround, the CFO touched on this today, the sequence of the turnaround, first stabilizing the top line after the invasive Network Vision upgrade, the need to do THAT first before now embarking on the cost cuts.
SPRINT also has the NEWEST network in the US. SPRINT has the most Spectrum of any carrier in the US, means capacity for real world results. Sprint is 50% the price of the others.
JUST A MATTER OF TIME AS PEOPLE FIND OUT........LOOK how many people ON THE MESSAGE BOARD are WORKING OVERTIME trying to prevent people from finding out.....the WORD IS GETTING OUT.
1 The handset Leasing Company is Off Balance Sheet
2 The reason for the OBS arrangement are "Strategic", that's an interesting comment by the CFO
3 Cash comes to Sprint at inception - which only I was posting about for months as part of the obvious structure that had to be in place
4 This puts the framework in place for many more tranches, a unique innovative structure
5 The structure has broad support via Softbank, Brightstar, Foxconn, major lenders
6 They will be doing many more such transactions, tranches moving into the Mobile Leasing Solutions
7 there will be a similar Network Equipment-based company
7 of course is a big one, as the whole plan is to take costs out of Sprint, when you tally up the savings from the Handset Leasing, opex run-rate cost cuts (2.0 Billion on top of the 1.5 billion for 2015), and the network equipment company, it is a very clear path to debt reduction, and then Dividend as Sprint becomes a cash cow for SB. That's the very (now evident) plan.
You could sum it up as Softbank and Brightstar bringing their full resources to bear on making Sprint into a cash cow. It's an amazing transformation.
oh, gee look it's another online maven ID, sucks to have been kicked to the side by Sprint for utter incompetence.... and unable to let it go......your bitterness is what's killing you.....watch and learn
Sprint has the nations fastest network per Nielsen Crowd Source study
Sprint has as much spectrum as AT&T and VZ combined
You can get a better network with Sprint at half the cost of the others - HALF
Sprint is adding subs, while maintaining highest ever prime mix, adding 553 Million postpaid customers last quarter, 4 million total net additions the last 4 quarters.
Postpaid churn best ever
New Lease Co for handsets (MLS) removes Sprint reliance on corporate debt
Sprint able to reduce costs (cuts well advanced per CFO) of 2.5 Billion dollars of annual run-rate
Son's new model for Sprint is Sprint as a cash driver for Softbank, can produce more FCF than Softbank Mobile (4.0 Billion per year), only reason for the difference is cost structure, points to a dividend once debt is paid down
These are FACTS, the basher-rat eggpert crowd cannot assimilate or deal with facts...they deal in lies and hate.... right now your nonsense is propped up by the lower share price.....soon you won't be so fortunate....
The drum beat of Sprint #1 wins for the network continue, proving wrong yet AGAIN one of the common basher-rat refrains, that the combination of Spectrum and tech used by Sprint can never result in a top network. WRONG again basher-rats, and remember this EVEN before the densification occurs....as Claure said the Sprint Network will move to #1 or #2 in all major markets....it's happening
sa, you don't know how to read financials, and/or you haven't been listening to the conference calls......look, THAT is what they spend each quarter in leased devices, and that expense is now going to be removed.....listen to what the CFO said yesterday and get yourself educated
Let's say that everything about Sprint and SB is EXACTLY the same as it is now, we are just going to change ONE thing, just one thing. In other words, the same subs trend change, same improvement in the network, same subs adds, same lower churn, same plans for Sprint to be a cash driver for SB, same plan for MLS and Equipment Lease Co, same cost cuts at 2.5 Billion, same balance sheet, same 120MHz of 2.5GHz spectrum. ALL the same. The ONE thing we are going to change in this exercise.....share price......let's say it was trading at $9.....
Question, would you have the same negativity being displayed in the media and by analysts, or would the whole of these actions and improvements be viewed though a prism of a higher share price. Think it over, it really makes you take pause, how much people actually base their whole opinion of value on price....price dictates what they actually see and believe and feel...kinda bizarre actually....
The company (in this case Sprint) and the common stock of the company are two different things. In an ideal circumstance the pps would reflect the fundamentals of the company. But does it always, of course not. Examples abound - we are talking about free markets. And remember a market is as much a means of seeking liquidity as it is a commentator on fundamentals. Remember Buffet's comment, short term the market is a voting machine, long term a weighing machine. Put another way, at what price level will more people "vote" to buy and sell, that's where there is the most liquidity, and that's where the price goes, that IS the market maker's job, and that has from MUCH to LITTLE to NOTHING to do with the fundamental view of the company.
Put another way, Oversold/undervalued and overbought/overvalued conditions DO exist. And this can go to extremes where there a disconnection of the pps/valuation to fundamentals....this happens on the low side, as well as on the high side such as in companies that are assigned "high-flyer" status, in technical lingo they are assigned a "high multiple"....that's just a way of saying investors are willing to pay more than you might expect based on earnings. Anyway, when you look at Sprint's assets and its earnings, and what's going on with the company overall, that is a fundamentals-based analysis. So when you hear people say really dumb stuff like Dave or jugs or teamsy say, things like the price is low, therefore the company is bad, realize they have no clue or are choosing to reinforce their delusion about fundamentals with low price. I will add that if they knew the fundamental story accurately, they would not lie and mislead and misstate it so often. Look at the company fundamentals first, if you fail to do so you have no perspective on the price.
IMO, good luck