It's been pretty quiet up until this point since earnings so maybe this will bring interest back in SWIR to take us back to new highs. We'll see.
I think Peter's goal is to ramble and ramble to distract and limit the number of potential negative questions. This management team is a joke.
The "company" lost 535,000 contract subscribers including the acquired users in May from US Cellular and in July from Clearwire that have since left. And, there are still 815,000 contract subscribers that remain on Sprint from those transactions. (I don't understand the manipulation with the numbers)
How are you saying they lost less than estimates?
From earlier today:
Sprint reported losing a total of 313,000 subscribers during the third quarter, far worse than the 140,000 subscribers that analysts had projected it would lose.
Postpaid customers tumbled by 535,000 last quarter, compared with 315,000 estimated by analysts. However, Sprint lost 1.05 million customers in the second quarter and 456,000 customers in the year-earlier period.
By comparison, AT&T (T) said it added 363,000 subscribers in the third quarter and Verizon Wireless padded its customer base with another 927,000 net contract additions.
The writer of today's Seeking Alpha article just confirmed my point from last week (with much more detail) that the upcoming earnings release & guidance should be much more interesting than what Q3 earning by itself will produce. If they can guide to revenue growth and significantly improved EPS guidance based on restructuring and margin improvements, NVTL share price could quickly more closer to 1X revenue. $8 to $10 a share by the end of the year. Or, at least a buyout in that range if they are ready to sell the company.
NVTL will trade on momentum of a speculated buyout &/or M2M Industry growth projections between now and earnings. The fact that they announced their restructuring thus taking costs out of the business should only result in improved EPS guidance on the earnings release as those costs haven't yet been factored in. If they can get their costs in order, they have enough revenue and potential revenue in this space to be much higher. For these reason, I believe NVTL climbs back above $4 before earnings based on improved future guidance expectations on the call.
Not a great day for Sprint. No new positions or interest since Son stopped buying.
Unfortunately, comparing these two companies anymore is like Apples and Oranges.
Today was another example, SWIR fires a Sr. VP effective immediately probably for lack of performance and two others take over the responsibilities as a way of consolidation and cost savings.
NVTL hasn't performed in years and they just keep giving themselves more shares and rewards.
NVTL clearly has poor management and should just sell already to Pantech, ZTE, or Huawei.
SWIR has a clear and focused strategy which is being recognized by MM.
I see this as being a hedge fund(s) creating some window dressing as they attempt to recognize some gains as they close out the quarter. Running from mid $12 on Friday to as high as $15.70 today is a major move with no real news. (Sorry Motley Fool) Hedgies know they can move this stock with a relatively low volume of shares.
You're kidding right? Trying to justify today's move by Hedge Funds because of 56K shares in 4 blocks. What about the other 1,900,000+ shares traded today?
Something triggered this and it looks like it has extended into the afterhours. Like many have commented, I don't believe the Motley Fool has the backing to drive this level of volume. It was stated earlier today that whatever drove this today, us peons aren't on the inside to know, but I'll take the 18%+ move and enjoy the weekend.
The Sprint brand is suffering.
Subscribers are leaving.
Being downgraded since merger completion.
The management team has mostly remained in tact. (Except for their Chief Sales Officer)
And Son continues to buy more shares.
I give him credit as he could very well be the smartest man in the room buying everyones shares at these levels, but it's one heck of a gamble (Over $25 B now) that we won't know the outcome for a few years.
For all of you that make this reference, it tells me you know nothing about stocks. Even if Softbank bought all 3.93B shares of Sprint, Sprint wouldn't be private as Softbank would own 100% of Sprint yet Softbank is a Public Company.
2nd, Softbank shows owning 3,143,191,523 shares as of today which is 79.98% of the outstanding shares. (Less than 1M shares from 80% and just shy of 200M shares from 85%) Softbank has purchased 66666000 shares on the open market since the deal was completed.
I think we can all agree that without the additional Softbank purchases, Sprint's stock would be lower than it is today. How much? No one knows, but the $450+M that Son has spent on the open market is protecting his original investment of 3B+ shares for 78% ownership.
The bigger issue right now is that their is little to no interest from any new outside investors to take a position in Sprint and their won't be until Sprint can show some signs of improvement. If and when that day comes, I agree that with the small amount of shares available outside of Softbank, Sprint can move higher pretty quickly, but that's a BIG IF at this point as Q3, Q4, and possibily Q1 of 2014 results will be a challenge.
There's no question that Masayoshi Son is going all in on Sprint, but the success or failure won't be determined for another 12 months.