Sprint's stock got slammed today, blessing in disguise

Sprint (ticker: S) lost up to a dollar during today's action, but I think it's oversold. Here's my fundamental perspective on it.

Sprint's stock had a lot of momentum in March with 17% reaching the low 5's. Rumors of a merger with T-Mobile had something to do with that. However, Sprint's meeting with Deutsche Telecom resulted in only one thing: acquisition of John Stanton to replace Chairman Craig McCaw. Rumors must of spurted from these two companies being under the same building. Overstated? Yes.

On sunday, AT&T is said to acquire T-Mobile from Deutsche Telecom. Today, Sprint's stock falls up to 20% due to downgrades, Jim Cramer saying stay away, evil shorts, etc. On what? The outlook of a slimmer oligopoly? This a reflection on the shareholders' faith in the government. It's sad.

Let's focus on the antithesis, though. AT&T has not completed the deal. The transaction has not filtered through the FTC and FCC. Although it reminds me of the United-Continental merger, the telecom industry falls under scrutiny. The service of air travel is under low growth, so United-Continental merger is no surprise. The only thing that could be improved is margins. Now, mobile voice is the same way. You might as well call mobile voice a utility. However, mobile data is not. Growth has just began. Wireless data technology needs to be accelerated through competition, not stunted by greed.

This merger will only benefit the "high ups" of AT&T and T-Mobile. Jobs will be lost due to consolidation. Prices will increase due to increased operating expenses. So, who do you think will pay for the merger? The consumer. J.P. Morgan may help fund it, but credit just creates an accelerated price increase for this premium service that dares to combat food and oil. No good. If FCC lets AT&T buy T-Mobile, then what's to stop Verizon or AT&T from buying Sprint, MetroPCS, U.S. Cellular? Government needs to intervene and see through the lobbying.

So, back to the point of my post. Sprint just got hosed by vapor. Media only reports that the deal is not complete only after the market closes, which is why there was so much volume in the after hours. So, thanks AT&T for jumping the gun on an immature announcement to create another entry point for this undervalued stock. CTIA will prove Sprint's sense on the market demand (Google voice integration, strong wireless devices line-up) and the earnings announcement in May will indicate a strong reversal.