Both have nationwide networks to pay for. Both have 50 something million customers.
TMUS is profitable.....
Simple math guys....Sprint gets their cost structure inline or better than TMUS
And Sprint will be PROFITABLE TOO!
Son and Claute are on it!
Stock holding solid and creeping up even with the barrage of negative press and slew of downgrades....something positive is behond this strength...perhaps solid proof of the turnaround? or the Google rumor having some legs?
That's right, at today's price of $3.40 a share, plus all of Sprints Debt (34 billion), $45 Billion buys THE WHOLE PIE!
-58 BILLION CUSTOMERS!
-$115 BILLION WORTH OF SPECTRUM!
-$35 BILLION OF REVENUE!
-DEBT FREE CASH COW OPPORTUNITY FOR THE ACQUIRERS BOTTOM LINE!
All for just $45 BIllion!
And Cramer want you to SELL at $3 ???? LOL!!!!!
He's paid by Verizon/ATT to destroy Sprints corporate image and market cap. This is to protect the cushy dividend thats been paid out for generarions to almost every large mutual/pension fund. Maybe even his own hedge fund. No doubt about it, they are afraid of the serious threat Son poses to the big 2.
My original pre-SB buyout price is $2.85.....and I pocketed the buyout cash premium and used for down payment on a nice house. I recently bought more in the low $2's so I'm still UP on Sprint...better than I could have made in a mutual fund or savings account. Should I have sold all at $11? In retrospect, yes I should have, but there was risk of it going much higher if the tmobile deal were to get approved. This time I lost, but I've made 90% of my big profits holding LONG TERM and not trading in and out. I buy big blocks of shares when stock is low single digits, when insiders are loading up....then sell after a huge multi year run, when those same insiders are now SELLING....that's how I make big $$$$
You guys make money bashing and shorting, this time, luck was on your side. Congrats. I think the next few years though will be good to us longs. Hopefully you guys were loading up in the $2's for the big multi year run about to start. Watch those insiders!
And Sprint has the most spectrum....their network will get filled with paying customers...and when it does, BOOM...we take off!
Get in now, the ground floor of the major mobile internet shift, while the network still has vacancy!
Sprint will be $25- $50 stock someday....10 bagger for the patient!
I too picked up a few more cheapies today! Couldn't resist getting them at half what Son/Claure paid :)
I wouldn't be holding short tomorrow, the day of Softbanks late night earnings release. If any Sprint positive news is released, it can set up for one big squeeze Wednesday a.m.
Yeah I was watching that big $3 TMUS drop also....no news...must be something negative leaking out you would think since the Big 2 are hitting yearly highs. Strange....something's likely up.
At Fridays closing stock prices,
To buyout Tmobile and payoff all debt = $55Billion
To buyout Sprint and payoff all debt = $45Billion
Sprint still a much better Value when you pay off ALL DEBT
Imagine the network upgrade possibilties with a Debt Free Sprint once taken over....Google Wireless could certainly afford to upgrade the network beyond "Lumpy Gravy", no?
My point is that at this price, buyers can payoff all debt and grab the whole company and all its cash flow for $45 billion....buyers would be tripping over themselves to get the whole debt free pie at this price. Dont you think Son would take $2.50 per share over $0.0 per share? Estentially there is zero downside risk at this price. ATT offered $40 billion for a much smaller Tmobile 5 years ago and risked 5 billion break up fee to get it, thats how desperate they were.