|Bid||6.23 x 301500|
|Ask||6.29 x 1100|
|Day's Range||6.23 - 6.37|
|52 Week Range||4.81 - 6.62|
|Beta (3Y Monthly)||0.78|
|PE Ratio (TTM)||85.00|
|Earnings Date||Apr 30, 2019 - May 6, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.58|
Sprint CEO Michel Combes met with the FCC to discuss "the financial, network and scale challenges Sprint faces."
Over the past few months, the telecommunications industry has enjoyed a lift in attention, and for good reason. With Verizon (NYSE:VZ) leading the 5G high-speed network rollout, the new technology has strong implications for everyone. That includes relative bit-player Sprint (NYSE:S). As T-Mobile US (NASDAQ:TMUS) makes its case for buying out S stock, how should investors react?Source: Shutterstock On the surface, the merger appears to make economic and logical sense, if only because T-Mobile CEO John Legere is constantly fighting on the campaign trail. With his quirky mannerism and even quirkier fashion-sense, Legere cuts a controversial figure. Nevertheless, you can't fault the guy for his ambitiousness.Legere has faced a circus of attention from legislators and committees. Some of the questioning, in my opinion, borders on the ridiculous. For example, Democratic Representative Hank Johnson criticized T-Mobile executives for spending $195,000 at one of President Trump's hotels. The implication was that Legere was subtly attempting to curry favor in his quest for Sprint stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPersonally, I view that inference as a stretch. Consistently, the media has focused the spotlight on Trump's possible collusion with Russia. The last thing anyone needs in this environment is more attention. * 10 Stocks on the Rise Heading Into the Second Quarter That said, Legere has redirected the media's glare to a positive direction. Throughout telecom's version of the Spanish Inquisition, Legere emphasized the benefits of a T-Mobile-Sprint merger. Primarily, a combined entity would upend the duopoly of Verizon and AT&T (NYSE:T). The TMUS head rightfully points out that three strong competitors are better than two contenders and two afterthoughts.If all opposing politicians have are silly or irrelevant questions, then T-Mobile has a clear shot at acquiring Sprint stock. Unfortunately, nothing is ever that easy. Tough Questions Plague S Stock and the Proposed MergerFrom combing through various articles on the web, the consensus appears that Legere has a compelling argument. Therefore, the legal greenlight for the merger is an inevitability. But I can't help looking at the S stock price.Although shares are up over 9% this year, the journey has been a choppy one. Based on current levels, the S stock price hasn't moved at all since late summer of 2016. And the fact that it lost steam in recent trades does nothing to bolster confidence in a possible merger.On the other hand, both Verizon and AT&T are doing what they usually do: trudging along while paying their shareholders generous dividends.But I'm getting more concerned when I consider the arguments against T-Mobile's buyout of Sprint stock. While Legere emphasizes the broader argument that the merger will benefit society, that logic doesn't hold up well. For instance, a combined entity would almost surely lead to job losses, particularly the high-paying kind.The counterargument is that this reinvigorated telecom firm will make inroads to rural communities, boosting both connectivity and job growth. If anything, Fox Business has bought into this narrative as well, I suspect, as rural residents.However, the idea that this merger will close the digital divide isn't entirely convincing. For one thing, the buyout will take many years to complete. During that time, rural residents must settle for less-than-stellar internet speeds. In addition, unless the T-Mobile-Sprint entity encounters competition, it has no incentive to reduce prices.On top of that, consolidation in telecom risks depressing prices in major markets, and therefore, wages. Ironically, opposing Democrats have adopted the stereotypical Republican playbook by supporting the status quo in the telecom industry. Complicated Nature Hurts Sprint StockI don't necessarily like giving my thoughts about high-level mergers. With so many gears involved, it's difficult to predict the deal's trajectory with any confidence. * 7 5G Stocks to Buy as the Race for Spectrum Tightens But with S stock, you're also talking about telecom. This is one of the most important, if not the most important sector. As we head toward true 5G integration, telecoms will touch virtually every area of our lives. From automated technologies to artificial intelligence to healthcare, this industry will lever unprecedented influence.As such, lawmakers and regulatory agencies will go over the proposed deal with a fine comb. And when they're satisfied with the results, they'll do it again. Just when you think you're through the door, an appeals process could undo everything.I believe that's the reason why Sprint stock has looked so unconvincing lately. In my opinion, this is far from a done deal. If you're speculating purely on the merger, you may want to take a breather or two.As of this writing, Josh Enomoto was long AT&T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Sprint Stock Isn't Worth a Gamble for the T-Mobile Merger appeared first on InvestorPlace.
The Latest Updates from the Telecom Sector(Continued from Prior Part)AT&T reorganizes WarnerMedia unit AT&T (T) recently reorganized its WarnerMedia division in a move that seems to be aimed at cutting costs and allowing for more investments
OVERLAND PARK, Kan., March 21, 2019 /PRNewswire/ -- In support of military Veterans' health care, Sprint (NYSE:S) is now providing unlimited high-speed wireless data at no charge when they connect over the Sprint Network with their VA providers through the VA's telehealth application, VA Video Connect. This service is available to Sprint customers who are military Veterans, caregivers and family members of Veterans, or clinicians/technicians supporting Veteran healthcare.
The Latest Updates from the Telecom Sector(Continued from Prior Part)Sprint selling its headquarters campus Sprint (S) is selling its Overland Park headquarters in a reorganization drive ahead of its planned merger with T-Mobile (TMUS). The company
How's Sprint Positioned in March?(Continued from Prior Part)Sprint’s moving averagesIn this part, we’ll discuss Sprint’s (S) technical indicators compared to its peers in the telecom space. Recently, Sprint went above its 20-day and 100-day
New Curiosity™ IoT Estimation Tool Revolutionizes IoT Project Planning by Providing Customized Pricing Estimates for IoT Data Services OVERLAND PARK, Kan. , March 20, 2019 /PRNewswire/ -- Sprint (NYSE: ...
How's Sprint Positioned in March?(Continued from Prior Part)Analysts’ recommendationsAccording to data compiled by Reuters, as of March 15, Sprint (S) stock was rated as a “hold” by 13 of the 20 analysts covering the stock. Three analysts
How's Sprint Positioned in March?(Continued from Prior Part)Sprint’s scale As of March 15, Sprint’s (S) market capitalization was $26.1 billion. Sprint is the fourth-largest US wireless carrier in terms of market capitalization. AT&T (T) had
How's Sprint Positioned in March?(Continued from Prior Part)Shareholder returns and stock trends On March 15, Sprint’s (S) closing price was $6.39 per share. Based on the closing price, Sprint has a market capitalization of $26.1 billion—the
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Deutsche Telekom AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
How's Sprint Positioned in March?(Continued from Prior Part)Sprint’s mobile 5GSprint (S), the fourth-largest wireless service provider in the United States, plans to launch its commercial mobile 5G service this year. The company stated that its
How's Sprint Positioned in March?(Continued from Prior Part)T-Mobile and Sprint merger update On March 7, the FCC (U.S. Federal Communications Commission) stated that it “paused its 180-day informal time clock” on the review of the $26 billion
How's Sprint Positioned in March?Sprint’s earnings trend Sprint (S) reported an adjusted EPS of $0.06 in the first nine months of fiscal 2018—year ended on March 31. The company’s EPS was $0.08 during the same period in fiscal 2017, which
Why Did Raymond James Upgrade AT&T Stock on Friday?(Continued from Prior Part)AT&T’s cash flows AT&T (T) posted free cash flow of $22.4 billion in 2018, an increase of 36% from its 2017 level. Its cash flow from operations also
Why Did Raymond James Upgrade AT&T Stock on Friday?(Continued from Prior Part)Fourth-quarter results AT&T (T), the second-largest US wireless carrier, met its earnings estimates but missed on revenue in the fourth quarter of 2018. AT&T
Why Did Raymond James Upgrade AT&T Stock on Friday?AT&T stock rose 1.29% on Friday Shares of US telecommunications carrier AT&T (T) rose 1.29% and closed at $30.67 on March 15 after Raymond James upgraded its rating on the company. On a
All You Need to Know ahead of PayPal’s Q1 Results(Continued from Prior Part)PayPal-SoftBank showdown in Latin AmericaThere’s no end in sight to what now looks to be a clear tit-for-tat between PayPal (PYPL) and SoftBank (SFTBF), the parent
The Latest from Verizon: Cost-Cutting, Dividends, and Valuation(Continued from Prior Part)Verizon’s moving averagesNow let’s look at Verizon’s (VZ) technical indicators and compare them to its peers in the telecom space. Recently, Verizon
T-Mobile (NASDAQ:TMUS) stock has spent the last months fighting to complete its merger with Sprint (NYSE:S), a deal that has become a partisan Washington soap opera. The question for investors is, what happens after the merger goes through?Source: Mike Mozart via Flickr (modified)CEO John Legere has been grilled by Democrats over the company's use of the Trump Hotel, over where it gets its equipment and over what it does with data it collects from handsets.But the deal will likely get done, if only because Democrats are now so opposed to it.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Legere's Fight for TMUS StockDemocrats argue the merger will cut the number of national wireless competitors from 4 to 3. T-Mobile and Sprint argue that three strong competitors are better than two strong and two weak ones. They also point to the wireless ambitions of competitors like Comcast (NASDAQ:CMCSA).Throughout this decade, AT&T (NYSE:T) and Verizon Communications (NYSE:VZ) have each controlled one-third of the U.S. wireless market. T-Mobile and Sprint share most of the other third. In arguing for the merger, Sprint notes the two larger companies have 93% of the industry's cash flow, a shared monopoly the new T-Mobile would break. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% The main change this decade has been T-Mobile's rise at Sprint's expense. The trend wore down Masayoshi Son, who took a controlling interest in Sprint in 2012 and had wanted his company to control any merger. Son is now focused on his $100 billion "Vision Fund," buying big positions in companies like Uber.Deutsche Telekom AG (OTCMKTS:DTEGY) owns about two-thirds of TMUS stock. The Sprint deal will reduce that. The combined company would be mainly foreign-owned, but no one foreign entity would have control.The focus would shift to Legere, which is where he likes it. After taking command in 2012, he grew out his hair, threw leather jackets over t-shirts, and began the "un-carrier" campaign that finally brought Sprint to the table as junior partner. Legere has become an adept politician, and like any politician, he has spent the merger campaign making promises. T-Mobile Will Be a Spectrum BuyerMost of those promises have involved 5G, an encoding technology that lets carriers use a host of new frequencies. It can build markets from TV and intelligent devices to self-driving cars.As part of its merger effort, TMUS stock is promising more, cheaper bandwidth for rural customers, a wireless replacement for cable or satellite TV, and stable prices.To make this happen, Legere is promising to buy more spectrum, in the 24 GHz and 28 GHz range.Using the new spectrum means lower power radios, but many more base stations since the waves attenuate so fast. T-Mobile is also fighting to get more C-Band spectrum, at between 4-8 GHz, against an alliance of satellite companies. The Bottom LineRight now, T-Mobile shares sell at a premium price to earnings multiple of 21.5, despite paying no dividend. AT&T and Verizon pay dividends yielding 6.5% and 4.5%, respectively.The reason for the price is growth. T-Mobile revenues grew 3% last year. Investors are betting the Sprint merger will go through, giving it more than the $45 billion in combined operating cash flow the two companies earned last year.T-Mobile is also seen as a more entrepreneurial company than any other wireless outfit. If a bus ran John Legere over tomorrow, the stock would tank. Fortunately, Legere prefers limousines.To turn his big plans into reality, however, T-Mobile is going to need executive depth. Promises without execution are called failure.Dana Blankenhorn http://www.danablankenhorn.com is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Stocks Sitting on Huge Piles of Cash * The 10 Best Stocks to Buy for the Bull Market's Anniversary * 7 Dividend Stocks With Big Yields Compare Brokers The post For T-Mobile Stock, Optimism Reigns After Sprint appeared first on InvestorPlace.
The Latest from Verizon: Cost-Cutting, Dividends, and Valuation(Continued from Prior Part)Analyst recommendations Of the 30 analysts tracking Verizon (VZ) stock, 40% recommend a “buy,” while 60% recommend a “hold.” None of the analysts
OVERLAND PARK, Kan., March 14, 2019 /PRNewswire/ -- Sprint (NYSE:S) is celebrating the opening of its Sprint 5G Experience, a dedicated immersive center designed to showcase and explain how 5G works and to help change the way people live, work and play. The company held a ribbon-cutting ceremony at its headquarters to unveil the space ahead of its 5G commercial service launch expected to begin in Kansas City and other markets in May. "We are thrilled to provide our guests and employees an exciting way to experience the future of wireless technology in a fun and educational way in our new space," said Steve Gaffney, Sprint vice president of media and experiential marketing.
The Latest from Verizon: Cost-Cutting, Dividends, and Valuation(Continued from Prior Part)Verizon’s scale As of March 11, Verizon’s (VZ) market capitalization was $237.9 billion, making it the largest US mobile operator in terms of market
The Latest from Verizon: Cost-Cutting, Dividends, and Valuation(Continued from Prior Part)Verizon raises dividend Telecom giant Verizon (VZ) has been returning cash to its shareholders and boosting its dividend payments for the last few years. On