There are seven days until Sprint Nextel Corporation, my favorite stock, reports earnings. Analysts estimate -$.12 per share for the second quarter of 2011. That is a conservative number. It was at $4.50 when EPS hovered around $-.30. The stock hit a high of $6, and sits around $5.20 after reporting -.15 a share. $5.15 holds a nice entry point. However, the highest I will buy this stock is $5.10.
Sprint has "invested in its brand" for the past two years. I see the advertisements and promotions, including WiMax 4g push. Just recently, the company has tightened up and put some real strategies on the table. One of the projects is Project Vision.
Even though it may increase margins by decreasing costs, the merger of ATT and T-Mobile still looms. Clearwire is also cash strapped. Risk does keep this dog down.
However, I think Sprint will report in the black this year. Apple is losing the mobile device market share to Google and Sprint is benefiting. Sprint also is going to introduce new 4g plans, which always increases a telecom stock price. I think the reversal is in early stages, but we'll see in seven days if I'm right or wrong.
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