Would You Buy Stock in Sprint?

**ayh127** · 02-20-2012, 04:14 PM

Sprint stock is hovering around $2.20-$2.30 currently. Would you buy it?

They are currently not paying a dividend and not making money. They do have over 54 million customers (Boost Mobile and Virgin are counted) on their Network though.

**billm261** · 02-20-2012, 07:04 PM

Originally Posted by ayh127

Sprint stock is hovering around $2.20-$2.30 currently. Would you buy it?

They are currently not paying a dividend and not making money. They do have over 54 million customers (Boost Mobile and Virgin are counted) on their Network though.

Oh man, I've bought and sold this company numerous times and have been pondering getting back in myself.

What is your tolerance for risk?

If your looking to go long (and I mean a couple of years) it may be a good speculative play.

Most sites I do my research on seem to have a few buy recommendations and mostly a hold. The good thing is there are not a lot of sells. I've seen target prices in the mid 3's but they really are just opinions.

Don't read too much into the subscriber numbers but rather how much it cost this company to operate.
T-Mobile USA still manages (although it could change) to make money with less customers on about the same sized footprint.

This Network Vision initiative may be just what the doctor ordered and should reduce operating costs but at a heavy initial price.

It seems like all the negatives are already factored into the stock so a lot of it depends on your faith in the current managements ability to eventually turn a profit.

**Protagonist** · 02-20-2012, 08:52 PM

It is always dangerous to say that a stock "can't get any lower". But in this case I think it is a decent bet to put a small part of your portfolio into S. I recently bought a few hundred shares myself and I am cautiously optimistic that they wil give me a nice return in the next year or two.

**xchpstang** · 02-20-2012, 10:53 PM

I've owned a few shares myself since they went down to about $4. I didn't quite time the low point but I'm not that worried as this is a stock that is for the long run. If they can do Network Vision right or the timing is right for a mega merger later if they get absorbed by Verizon or AT&T then there's a chance the stock can pay handsomely.

**billm261** · 02-21-2012, 06:24 AM

Originally Posted by xchpstang

or the timing is right for a mega merger later if they get absorbed by Verizon or AT&T then there's a chance the stock can pay handsomely.

I think it's pretty clear there will be no mega mergers.

They are on their own it seems.

Sent from my Motorola Photon

**ayh127** · 02-21-2012, 09:04 AM

I think if they were going to get bought or merge with another company, now would be the opportune time since Sprint's stock is low.

**formercanuck** · 02-21-2012, 09:58 AM

I agree on that.

**Yankees368** · 02-21-2012, 10:03 AM

When was the last quarter than Sprint turned a profit? 2005?

**Cares** · 02-21-2012, 10:08 AM

Risk vs potential reward is great with S stock. 100 shares at $2? I'd do it if I wasn't aggressively watching my money for my first home

**billm261** · 02-21-2012, 10:09 AM

Originally Posted by Yankees368

When was the last quarter than Sprint turned a profit? 2005?

Yes, right before the Nextel merger.

Sent from my Motorola Photon

**Yankees368** · 02-21-2012, 10:25 AM

I would be in the group that says "they can't possibly lose any more value!" but uh, I can see it happening. They have a massive pile of debt and basically have to rebuild their entire network with Network Vision. Maybe once that is complete and they reap the benefits, but not now.

**billm261** · 02-21-2012, 11:21 AM

There is good support in the low 2.00 range with all the bad factors built in.

If you pay attention to it, this stock always seems to creep up a week before the earnings report. Then, it goes down.

I almost want to play it that way but my luck i'll buy it, sell it the day before the report and make a few bucks. Then the report will announce some spectacular news and the stock will double.

Sent from my Motorola Photon

**ayh127** · 02-21-2012, 11:04 PM

Sprint stock could go below $2 in 2012.

**Extraordinary** · 02-22-2012, 07:53 PM

I own Sprint and am at a 30% loss. Not selling the rest just yet, going to see what happens. Fortunately my other investments have done well as of recently and even if I do need to sell S at a loss, I am still ahead.

Was considering buying more of S but holding on what I have for now. I think S can get going again and become profitable in the future.

Look at Clear. Stock was down to about $1.20 and in one day it shot up to nearly $3 just because they made a little bit of profit.

MetroPCS was trading at $7 not too long ago as well after Q3 and now its like $10.50. Huge improvement! + 34% in 3 months!

And Cricket/Leap was down to $5.50 after Q3 as well, but was trading at over $10.00 this week

Also USM (USC) tanked after losing subscribers but it turns out they are making more money with higher ARPU's so it went from $36 to most recently $48 per share. Huge improvement! +20% in 6 months

It's all about overreaction, and if S has one quarter with good numbers it could easily shoot up to $7.

Look at Netflix for example, they said they were raising prices, they lost nearly a million customers, the stock went down to only $62/share. Lately it's been in the $110-$125 range. Last quarter they gained customers and still making good money. +65% in just 3 months. This can happen to S.

Originally Posted by ayh127

Sprint stock could go below $2 in 2012.

It could also go below $1. Or above $3. Just like almost anything else.

**billm261** · 02-22-2012, 08:11 PM

Originally Posted by Extraordinary

It's all about overreaction, and if S has one quarter with good numbers it could easily shoot up to $7.

Look at Netflix for example, they said they were raising prices, they lost nearly a million customers, the stock went down to only $62/share. Lately it's been in the $110-$125 range. Last quarter they gained customers and still making good money. +65% in just 3 months. This can happen to S.

Sprint doesn't need to add more customers (although of course it's the goal) to turn a profit, they need to reduce operating costs. T-Mobile reports tomorrow and they have still managed to make money prior with less customers.

I can't even guess what it costs to run the IDEN network nor what they pay in CDMA roaming fees. Once Network Vision is completed IDEN will be gone and roaming fees should be a lot less.