Re: Xohm spinoff - dslreports.com

Author	All Replies
MattE Obama '08 Premium join:2003-07-20 Jamestown, NC ·North State Commun.. ·Corporate Colocation	reply to en102 Re: Xohm spinoff 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!).
	to forum · permalink · · 2008-03-26 12:04:04 ·
en102 Canadian, eh? join:2001-01-26 Valencia, CA ·RoadRunner Cable ·DSL EXTREME ·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. -- Canada = Hollywood North
	to forum · permalink · · 2008-03-26 12:55:03 ·


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