brandpc
join:2003-08-25
Canton, CT
 ·Sprint Mobile Broa..
| Xohm spinoff
Why does everyone seem to think Sprint is going to spin off Xohn? Everyone who seems to claim this has little understanding of how important this technology will be to Sprint -- who has now focused the majority of their business model on wireless. Without a service like Xohm / Wi-Max, this company has nowhere to go. |
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expert007
join:2006-01-10
Buffalo, NY
| Everyone tends to believe it because the analysts, most of whom know more than John Q Public, keep saying it over and over. Of course, like anything else, the more Wall Street indicates that they "might" spin it off, they imply to investors that it "should" be spun off. Investors nod their heads in agreement and put pressure on Sprint management to do the "right" thing. |
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DaveNJ
No Fear
join:1999-09-01
New Jersey
 ·Comcast
·Patriot Media
| reply to brandpc
Sprint should be broken down into 3 companies. Xohm, Sprint, and Nextel. Then just let nextel die off. Xohn would be the new company. I really don't think Xohm is going to do well. Because the Telcos guarantee sales, for phone manufactures. Xohn is a bit riskier. |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
·RoadRunner Cable
 ·DSL EXTREME
| reply to brandpc
Why ? Because Sprint is currently debt ridden, and its stock is hovering in the $6/share range, and has no cash to inject, but would suck cash out like a hoover.
A spun off company wouldn't be tied to Sprint's current misfortunes, and investors would be more eager to invest.
Eg. Would you invest in 'Sprint' who's stock is in the toilet, bleeding iDEN customers, just wrote off ~20 billion in debt (and its market cap is $18 billion).
or...
Would you want to invest in a new wireless company that has little ties to old school business, and its only real debt is the value of its wireless spectrum assets and R&D investments.
While Sprint would like to keep Xohm for its potential to turn around the company, I suspect that many investors do not want to dump money into Sprint itself right now.
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Canada = Hollywood North |
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Matt
Gone playing Dragon Age Origins
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
| said by en102  :Why ? Because Sprint is currently debt ridden, and its stock is hovering in the $6/share range, and has no cash to inject, but would suck cash out like a hoover. A spun off company wouldn't be tied to Sprint's current misfortunes, and investors would be more eager to invest. Eg. Would you invest in 'Sprint' who's stock is in the toilet, bleeding iDEN customers, just wrote off ~20 billion in debt (and its market cap is $18 billion). or... Would you want to invest in a new wireless company that has little ties to old school business, and its only real debt is the value of its wireless spectrum assets and R&D investments. While Sprint would like to keep Xohm for its potential to turn around the company, I suspect that many investors do not want to dump money into Sprint itself right now. Actually, yes, now is the time to invest in Sprint, their stock has tanked and is at an all time low. They wrote off the 20 billion that was their cost for the Nextel merger, and they are getting a massive infusion of cash for Xohm. The people who makes a LOT of money in the stock market always BUY when the market is falling. Hell Verizon took a beating when they announced the cost of FiOS and they have rebounded. Sprint will be fine.
My gut tells me there are too many people who want Clearwire/Xohm to succeed. Intel would LOVE for WiMAX to be ubiquitous so all you have to do is buy a Centrino notebook, open it up, connect to the already present WiMAX network, and have it direct you to a webpage where you can sign up for Xohm service. It's brilliant. Intel wins on two front due to the WiMAX chipset embedded in the laptop, plus the tower transmission equipment chips, and Sprint wins because they have a new subscriber.
Sprint is very, very good at network engineering. They made a mistake with the Nextel merger, but at the time it was a good business move. The merger was handled terribly and the two companies never really became one and they have paid the price ($20 billion!). |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
| I agree for shareholders, that this would be a good time to purchase, (similar to those that purchased Global Crossing in the past). If someone is to purchase them, or at least attempt to purchase, their stock will jump.
For large investment firms, this is a different story.. as its a bit on the risky side.
Also... my mistake - Sprint Nextel is actually listed as 'junk' status, making it more difficult for them to get financing (outside of private investment)
»www.reuters.com/article/companyN···20080228
While I agree that Sprint is typically very good on the cutting edge of services... they're typically not good at delivery to make large profit.
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Canada = Hollywood North |
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tc1uscg
join:2005-03-09
Saint Clair Shores, MI
| reply to DaveNJ
said by DaveNJ :Sprint should be broken down into 3 companies. Xohm, Sprint, and Nextel. Then just let nextel die off. Xohn would be the new company. I really don't think Xohm is going to do well. Because the Telcos guarantee sales, for phone manufactures. Xohn is a bit riskier. Dude.. it was like that before. Why would they do a 180 and go back to the way it was before they have dumped money into the money pit known as PCS. Too bad when they wanted to buy Nextel, the FCC didn't FORCE them to sell off the wireline section of the company or let it go with LTD, then they wouldn't be in this mess, my stock is worth next to nothing and just maybe, they would have had 2nd thoughts before buy a company that was going down the $hitter anyway.  |
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