Volume has been 20% lower than the average 3 month for the 10 past days. Headlines have been fading ever since the AT&T and T-Mobile acquisition. The only realized headline occurred only recently on April 4. Joseph J. Euteneuer was pointed the new Chief Financial Officer. Google's visit to Kansas city and being bought out are based on speculation. Investors are even thinking CFO Euteneuer is a merger and acquisition specialist. However, nothing is realized in terms of M&A and Sprint has yet to say anything solid since CTIA. No upgrades nor downgrades.The stock seems to be stabilizing. The stock price is pretty close to it's 50-day moving average or $4.57. Call volume is healthy in May, and even better in August.
I'd like to recall the Conference call back in February when Bob Brust was CFO. Year over year, there was improvement in customer service, customer satisfaction, and an overall strengthening of the brand. Customers have shown a declined churn rate, and a best subscription net gain in 5 years. Looking forward, improved cell stations are projected to be launched in August. Phone product line up is strong. Cost reductions in the loyalty program and a decision to increase the fee in data heavy phones to balance out data expenses demonstrate noble action. CEO Dan Hesse has also iterated the idea of LTE being an option in the future. Overall, the conference call is a foreshadowing of a reversal.
We have to factor in macroeconomic concepts as well. Fed suspects interest rates are on the brink of increasing, oil prices is over $100 due to international warfare, the tech sector is having a growth recession. These are hurdles the stock price has to deal with. As a company, their organic growth will have no problem going into the next years. Bankruptcy doesn't seem likely, so you are left with either continued growth or a merger.
Last time I spoke of Sprint was when it fell to $4. It has stabilized to $4.55. I expect it to reach higher levels up to earnings report next month, and suggest a $5.25 early this summer.
Disclosure: Long on S
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