| stevie 2006-08-03, 3:33 pm |
| there was an article in Wed or Tues Wall Street Journal that stated some
analysts believe Sprint stock is a very good bargain.
apparently, cost cutting has had an effect (at Sprint) and some analysts
believe the stock is due for a good turnaround.
"John Navas" < spamfilter0@navasgro
up.com> wrote in message
news:eog4d2la60imuut
71svjqucvs4p9gb758r@
4ax.com...
As I predicted, with more rough water still ahead:
<http://www.forbes.com/markets/equit...3markets09.html>
Wireless carrier Sprint's marriage with walkie-talkie phone
specialist Nextel hasn't been as fruitful as boss Gary Forsee may
have hoped.
Sprint Nextel's shares fell as much as 15% Thursday morning after the
fourth-largest U.S. wireless provider announced weak second-quarter
results. Sprint's $10 billion in revenue fell short of Wall Street's
$10.4 billion guess, and the company added fewer subscribers and lost
more existing customers than analysts expected.
Bear Stearns downgraded Sprint Nextel (nyse: S - news - people ) from
"peer perform" from "outperform" on the results.
"Given the extremely competitive environment for wireless services,
we think it could take Sprint Nextel a while to turn things around,"
analyst Phil Cusick wrote in a report Thursday.
Churn, a measurement of the number of subscribers a carrier loses,
has plagued Sprint. In the second quarter, the company lost 2.1% of
customers on normal, post-paid calling plans, similar to its first
quarter.
But the carrier lost 6% of its pre-paid customers, which includes
subscribers to its youth-focused service, Boost Mobile, versus 5.4%
in the prior quarter.
Sprint added almost 500,000 new pre-paid customers during the
quarter, beating estimates.
But high churn suggests "significant erosion in the economics of the
company's formerly best-in-class prepaid service," wrote Sanford C.
Bernstein & Co. analyst Jeffrey Halpern in a recent note entitled
"While We've Probably Hit Peak Ugliness, Recovery Could Take a
While."
Paul Saleh, Sprint's chief financial officer, told Forbes.com
Thursday that the company would announce its "fourth-generation"
network technology later this month, which could speed up its Sprint
and Nextel network integration.
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Best regards, FAQ FOR CINGULAR WIRELESS:
John Navas <http://en.wikibooks.org/wiki/ Cingu...less_FA
Q>
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