For Immediate Release
Chicago, IL – June 8, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Sprint Nextel Corp. (S), Apple Inc. (AAPL), Leap Wireless International Inc. (LEAP), MetroPCS Communications Inc. (PCS) and America Movil S.A.B. de C.V. (AMX).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
Sprint to Offer Prepaid iPhone
The move will make Sprint the second carrier to offer prepaid iPhones after Leap Wireless International Inc. (LEAP). Leap is expected to offer iPhone from June 22 on a prepaid basis through its Cricket brand.
Leap’s Cricket will offer iPhone 4S for $499 and iPhone 4 for $399 with a prepaid service monthly plan of $55. The iPhone 4S has data storage capacity of 16 GB while iPhone 4 can store up to 8GB of data. Cricket will throttle the speed if data usage exceeds 2.3 GB per month.
Sprint has not yet disclosed its pricing plans for iPhones. Currently, Virgin Mobile provides unlimited data for $35 per month and throttles the speed after 2.5 GB of data usage. In addition, Sprint offers iPhone 4 for $99.99 and iPhone 4S for $199.99, much lower than Leap’s price.
Further, Cricket covers a small market, say about 20% of the populace, while Virgin Mobile has a nationwide footprint. We believe prepaid iPhone from Sprint would be widely adopted as compared to Leap’s Cricket brand. Also, the prepaid offering will help Sprint to fulfill its promise of paying $15.5 billion to Apple over the next four years. The company has to pay 40% more subsidies on iPhones than other smartphones. This equates to more than $200 per device.
Sprint’s prepaid wireless service is considered the major growth arena as contract (post-paid) customers are dwindling. Sprint added 489,000 prepaid users while lost 192,000 post-paid customers in the first quarter. Multi-brands like Boost Mobile, Assurance Wireless and Virgin Mobile, as well as innovative offers like $50 Monthly Unlimited plan with Shrinkage, Beyond Talk and Broadband2Go are contributing significantly to the company’s prepaid subscriber growth.
Additionally, Sprint plans to launch WiMAX service on a prepaid basis for both Virgin Mobile and Boost Mobile later this quarter. These expansions will provide Sprint a competitive edge over prepaid wireless carriers such as Leap, MetroPCS Communications Inc. (PCS) and America Movil S.A.B. de C.V. (AMX).
We are maintaining our long-term Neutral recommendation on Sprint. For the short term (1–3 months), the stock retains a Zacks #3 (Hold) Rank.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: https://twitter.com/zacksresearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com