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Craig Moffett Single Handedly Tanks Sprint Stock
Insists Chance of Bankruptcy is Around 50%

Sanford C. Bernstein analyst Craig Moffett is downgrading Sprint stock insisting the company faces "a very legitimate risk" of bankruptcy. The reasons for the downgrade are obvious, given that Sprint's high pay out for the iPhone and their costly looming LTE network puts the company on even more tenuous footing in their battle against AT&T and Verizon. Still, Moffett's note seemed to almost enjoy piling on, causing Sprint's stock to take a beating earlier this week. His note puts a Sprint bankruptcy at about 50%:

quote:
“Sprint’s stock price may be best thought of as the awkward probability-weighted expected value of two distinctly different outcomes. In the first, the company successfully navigates its complicated Network Vision upgrade, stabilizes Clearwire‘s financial position, and delivers a compelling 4G product. In the second, some combination of its gargantuan take-or-pay contract with Apple, a hobbled 4G offering, and a stupendous debt burden bring the company to its knees.
Like most investors, Moffett has long whined about absolutely any and all network upgrade costs, and Sprint's preparing for a major one. Sprint's certainly going to have to engage in a lot of spectrum juggling to get LTE built, but in a market where AT&T and Verizon sit on most of the spectrum -- that shouldn't be news to anyone. They'll initially use their PCS G block 10 MHz nationwide licenses for a 5 MHz x 5 MHz LTE channel, refarm their SMR 800 MHz spectrum as they shutter the iDen network, then rely heavily on Clearwire now that LightSquared is dead. Moffett simply doesn't believe Sprint can field a quality LTE product:
quote:
The problem is 4G. Sprint doesn’t have enough free-and-clear spectrum on which to launch a competitive LTE network, and it doesn’t have the money to clear spectrum that’s already in use. We expect Sprint’s competitiveness to begin to backslide when LTE becomes the nation’s de facto standard.
Again, the fact that Sprint's wallet is tight or that their LTE build will be tricky is not really news. Sprint's board is so nervous about the upgrades that they bucked CEO Hesse's attempt to acquire MetroPCS fearing it would be too many moving pieces. Still, Moffett is not exactly known for singing on key when it comes to predicting wireless fortunes, insisting back in 2009 that the wireless industry was "collapsing." Stock holdings for all carriers are threatened if there's worries about a price war, so it's in Sanford Bernstein's best interests to assure investors that Sprint shouldn't be taken seriously.

Given the obvious investor interest in charging more money for less product, Moffet's been at the forefront of the push toward metered billing, going so far as to call AT&T's low caps and $10 per GB overages "the next generation of communications." Sprint's the last major hold out still offering unlimited smartphone data, and putting a little extra pressure on Sprint could help nudge them toward killing unlimited smartphone data sooner rather than later. With pressure both outside and from within, it would be surprising if Sprint's unlimited smartphone data plan survives the year.
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ITALIAN926
join:2003-08-16

ITALIAN926

Member

??

Who the *bleep* is Craig Moffett ?
chgo_man99
join:2010-01-01
Sunnyvale, CA

1 recommendation

chgo_man99

Member

Re: ??

Voodoo witch doctor of wall street

NO to ESPN
@sbcglobal.net

NO to ESPN

Anon

Re: ??

More like the Captain Wrongway Peachfuzz of wall street.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

1 edit

FFH5 to ITALIAN926

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to ITALIAN926
said by ITALIAN926:

Who the *bleep* is Craig Moffett ?

»www.ctam.com/html/nyc/bi ··· fett.htm
»www.institutionalinvesto ··· =2913861
daake07
join:2011-06-28
Kearney, NE

daake07 to ITALIAN926

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to ITALIAN926
I try to keep up to date on Wall Street happenings and I can honestly say I've never heard of this guy.

Clearly as Karl stated he is a sector analyst at Bernstein (Which is rather small Wall Street firm with around 3000 employees). The view is pretty widely held though, analysts at Goldman Sachs have long wondered how Sprint was going to pay for their network upgrades.

Anyone of us can clearly see that Sprint is in trouble and without a huge increase in customers there is no logical way they can recover. It will be interesting to see what they decide to do with the company once it goes bankrupt though, will they sell off the assets to Verizon and US Cellular, or will they file Chapter 11 and try to restructure.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: ??

said by daake07:

It will be interesting to see what they decide to do with the company once it goes bankrupt though, will they sell off the assets to Verizon and US Cellular, or will they file Chapter 11 and try to restructure.

I'd bet on a restructuring effort. I wouldn't expect much interest by VZ, unless the assets go for a couple of pennies on the dollar. Does US Cellular have the resources (or need) to undertake an acquisition?
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned) to daake07

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to daake07
right and its been made clear by Dan that Sprint has NO extra cash to spare and their reserves are spent thanks to the iPhone and this massive upgrade. Either they're going to breach the iPhone contract or they'll be looking at other ways to fund the network build out. They're not going to be able to spend money on both and keep moving.

And anyone claiming that the iPhone is bringing a more solid base is full of it in terms of bringing in extra $$$ as Sprint spent MORE than the iPhone is making them.

delusion ftl
@comcast.net

delusion ftl

Anon

Re: ??

Here's how bad it is. When Sprint's 15+ billion contract with Apple was leaked a good time before the 4s was released. Most analysts presumed that Apple was either making Sprint a wimax capable iPhone, OR Sprint was getting an exclusive on the new iPhone. It was unbelievable to have thought differently considering the *insane* contract terms. Then when the 4s came out and Sprint was the simply a 3rd tier 3g iPhone provider the monstrous mistake was apparent.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: ??

So, what's the bad part?
en103
join:2011-05-02

en103

Member

Re: ??

Bad part is what now happens when an LTE version comes out, and Sprint doesn't have an LTE network.
Currently, Sprint has one advantage on its iPhone - unlimited data.
VZW has a very large 3G network
AT&T has a very fast 3G network (faux G)

I personally have no current interest in LTE at this time... but many Apple fans (especially those wanting higher speed) will go LTE. AT&T has some, with decent 3G speeds to fall back on, VZW has a lot of LTE.

Sprint had better keep its unlimited available for some time, and build its LTE network fast.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: ??

And Sprint's 3g network SUCKS. its throttled and horribly SLOW compared to others, and their "unlimited" means limited as they've disconnected people on other unlimited plans.
openbox9
Premium Member
join:2004-01-26
71144

1 recommendation

openbox9 to en103

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to en103
So delusion ftl's issue is with Sprint's business practices in general and not outside agencies' analysis of the company? I though s/he was attempting to suggest shady analytical tactics by Moffett and other analysts. Anyway, what you suggest is simply one more strike against Sprint that helps to validate Moffett's recommendation.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: ??

but people on here don't believe it and I've been saying for awhile Sprint will end up in the hole due to this. No money- can't build out the network to complete (due to no money), customer's aren't bringing in any more money (unlimited plans don't get you anything- especially when paying out the ASS for the phone they're buying).
en103
join:2011-05-02

en103

Member

Re: ??

Sprint has always been at the front of innovation and deployment... but that's what cost them. They were always ahead of the market, and payed for it before acceptance was there.

Now with Sprint CDMA, Nextel iDEN, Clear WiMAX, LightSquared LTE (failed), they have a whole lot of incompatible end of life products.

Sell off some of that 2.5GHz band and they may be able to pay for their upgrades.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned) to openbox9

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to openbox9
the bad part is Sprint didn't have the money to start off with. That's the problem that Dan created- and now since money is low - other things can and will be affected at some point. money is just NOT going to grow on the trees especially since they're paying out the ASS for the iPhone. They're not making any money on it. Customer numbers may look great but that's it. Nothing more.

ohmy
@embarqhsd.net

ohmy

Anon

Re: ??

as a former Sprint employee/contractor I can tell you it was Gary Foresee that put the company in the ditch.

CableConvert
Premium Member
join:2003-12-05
Atlanta, GA

CableConvert to ITALIAN926

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to ITALIAN926
Wall St. VERMIN...thats what he is (in every stereotypical way you'd imagine). He probably has a financial interest in seeing sprint tank as he has been an AT&T fanboy propagandist for years...as well as completely wrong many of the times. How he got into the position he holds is baffling at best
openbox9
Premium Member
join:2004-01-26
71144

1 recommendation

openbox9

Premium Member

Re: ??

I don't believe analysts are allowed to own positions in companies they cover. Not saying that financial motive isn't involved in his analysis (after all, financial incentive exists everywhere), but Moffett isn't exactly suggesting anything that just about every other analyst and investor doesn't already know.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: ??

and why wouldn't they be allowed to? they're an outside company. That is doing a report.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: ??

Just did a quick read and apparently analysts and their firms can have positions in their covered companies, albeit restrictions do exist. All the more reason clients and investors need to understand the FD....if they're using the analysis. Due diligence for the win
said by SEC :

Restrictions on Personal Trading by Analysts — The rule changes bar analysts and members of their households from investing in a company's securities prior to its initial public offering if the company is in the business sector that the analyst covers. In addition, the rule changes require "blackout periods" that prohibit analysts from trading securities of the companies they follow for 30 days before and 5 days after they issue a research report about the company, and also prohibits analysts from trading against their most recent recommendations—subject to exceptions for unanticipated significant changes in the personal financial circumstances of the beneficial owner of a research analyst account.

Significance of the Change: Prohibiting analysts from trading around the time they issue research reports should reduce conflicts arising from personal financial interests.

Disclosures of Financial Interests in Covered Companies — The rule changes require analysts to disclose if they own shares of recommended companies. Firms are also required to disclose if they own 1% or more of a company's equity securities as of the previous month end.

Significance of the Change: Requiring analysts and securities firms to disclose financial interests can alert investors to potential biases in their recommendations.

patcat88
join:2002-04-05
Jamaica, NY

1 recommendation

patcat88

Member

Re: ??

said by openbox9:

Just did a quick read and apparently analysts and their firms can have positions in their covered companies, albeit restrictions do exist. All the more reason clients and investors need to understand the FD....if they're using the analysis. Due diligence for the win

Set up a shell company and invest all you want »en.wikipedia.org/wiki/Bl ··· nd_trust
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: ??

Do you understand what a blind trust is? Blind trusts serve to mitigate the potential conflicts of interest.
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

Re: ??

said by openbox9:

Do you understand what a blind trust is? Blind trusts serve to mitigate the potential conflicts of interest.

You think.

Unless your going to strap the white collar criminal trust owner and the trustee to a chair and beat him with a hose to "confess", you can't prove any conversation between the trustee and the beneficiary.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: ??

Ok, so you're assuming everyone is a criminal?
fiberguy2
My views are my own.
Premium Member
join:2005-05-20

fiberguy2

Premium Member

Re: ??

said by openbox9:

Ok, so you're assuming everyone is a criminal?

.. I'm one to assume that. They've got many years to have proved themselves anything but honest.

Just as the casinos are the only ones who win, in the banking industry, nothing is done unless there is something in it for them, and over the years, the people generally have lost. Remember 2008? .. this game has stated back in Reagan years.

You know the difference between the S&L scandals and the banking melt down of today? ... easy.. when the S&L people did what they did, Reagan hadn't made that practice legal,... yet.
Skippy25
join:2000-09-13
Hazelwood, MO

Skippy25 to openbox9

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to openbox9
Right.... just like it is illegal to bribe a public official.
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

Re: ??

Just like its legal to give political donations to a public official.
Skippy25
join:2000-09-13
Hazelwood, MO

Skippy25

Member

Re: ??

Exactly that's what I said.... legalized bribery.

2 Days in a row I get to post a great quote (yah!)

"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it."
- Frederic Bastiat
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned) to patcat88

Member

to patcat88
basically my point. Who says they can't invest. All you need to do is put your stock in a "fake" company and that's all. Nobody would be the wiser.
fiberguy2
My views are my own.
Premium Member
join:2005-05-20

fiberguy2 to openbox9

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to openbox9
Really? .. did I detect that you believe that the banking industry, and the players in it, are honest and don't do anything funny when it comes to manipulation?

Let me recap things for you..

Reaganomics Today

That sums up the 80's to today.. about 30 years of honesty. One can easily point to a sign of any change to a deliberate act of manipulating the market place at Wall St.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: ??

Sigh....we can debate the merits of Reaganomics another time.

I really dislike dealing with absolutes and I try not to typecast people into groups. Do immoral and unethical bankers exist? Sure. Do immoral and unethical people exist in IT? Sure. I can just as easily suggest that you are a criminal as you can suggest that all bankers are criminals.

So, once again, what exactly has Craig Moffett done while accomplishing his duties as a sector analysis for Sandford Bernstein, that is so horrible and dishonest?

••••
45612019 (banned)
join:2004-02-05
New York, NY

45612019 (banned) to ITALIAN926

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to ITALIAN926
An obnoxious hack who this website seems to have an obsession with reporting on.

His opinions are literally less valuable than mine are. This is a man who comes out with a new article every day pimping bandwidth caps and making wrong predictions on how the communications industry is going to evolve.

trparky
Premium Member
join:2000-05-24
Cleveland, OH

trparky to ITALIAN926

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to ITALIAN926
How the hell can one man have this much power? It seems like one word out of his mouth is enough to either make or break a stock/company.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: ??

He has so much power due to other websites have nothing better to "report" on than cover him. So it makes him famous and popular by default.

WHT
join:2010-03-26
Rosston, TX

WHT to ITALIAN926

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»www.google.com/search?as ··· _rights=

Karl mentions him a lot. Moffet just loves cable and hates telco.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: ??

if it wasn't for him BBR would be dead most times. Karl GIVES him fame.
firedrakes
join:2009-01-29
Arcadia, FL

firedrakes to ITALIAN926

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to ITALIAN926
craig moffett.. %^#&$*^ you greedy sob

•••

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

I hope he is wrong

but if this is true, I hope AT&T and Verizon Wireless are not allowed to buy it up.
FloridaBoy
join:2009-06-22
Bradenton, FL

FloridaBoy

Member

I Wonder...

If Vodafone, who owns 45 percent of Verizon Wireless, would ever want to make a play for Sprint and be the sole owner of an American carrier.

You can't tell me it hasn't crossed their mind.

••••
AndyDufresne
Premium Member
join:2010-10-30
Chanhassen, MN

AndyDufresne

Premium Member

He is upset

1- Sprint still offers unlimited service
2- Cost of upgrades

He is hoping to push them over cliff since that will benefit VZ and T.

••••••••••
moonpuppy (banned)
join:2000-08-21
Glen Burnie, MD

moonpuppy (banned)

Member

Craig Moffet should be sued....

Seriously, he just tanked a company stock for no other reason than probably to make money (by either selling short or trying to buy low.)

He needs to be hauled in front of a judge and made to explain himself.

••••••••
tired_runner
Premium Member
join:2000-08-25
CT
·Frontier FiberOp..

tired_runner

Premium Member

Now's the time to buy

Sprint Nextel @ $2.75/share

They won't die. They'll file a chapter 11 and keep it moving. Two years from now Craig Moffett is gonna wish he'd invested in Sprint.

In a wireless industry mired with nickel and dime offerings, Sprint still has a competitive edge.

•••••

FifthE1ement
Tech Nut
join:2005-03-16
Fort Lauderdale, FL

FifthE1ement

Member

Sprint Future is 50/50 but Unlimited will stay!

I had two Sprint phones on a family plan but the service in my area is horrible. I get horrible signal levels and when I do try to use the internet it is 30-100Kbps which is basically useless. And this is all over the South Florida area!

They launched 4G which my phone happens to be but it is useless unless you're sitting in one spot and can see the tower. But I called them and they sent me an Airvana (Sprint Mini-tower which works off my home internet) and at least in my house I'm OK now but I still dropped one of my lines which I NEEDED internet (which Sprints 3G/4G hotspot cards are unusable in my area due to low speeds and signal issues).

The only reason I'm still with them is that they are the only carrier with Unlimited data and I want to support their business model at the cost of my own usability. I have an OG EVO 4G and I'm waiting for the next release of a generational leap in hardware (quad-core) Sprint phone before I upgrade.

But the fact still remains that I am willing to hold onto Sprint through their LTE upgrade and crappy service but if they drop unlimited data they drop me. I have at least 4 other close friends that are only with Sprint for their support of unlimited data (even-though we can't use it if we wanted to because we have no signal or 56k speeds).

Everyone says they will drop unlimited data and I don't agree with them at all as I see unlimited data as being the only thing keeping them afloat! MetroPCS walled, but Unlimited, 4G is available in my area and is only a phone switch away. They just released a 4G dual-core phone that I could live with!

If Sprint can hold together their platform until after the LTE upgrade they will succeed but if not they will lose everything!

5th

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: Sprint Future is 50/50 but Unlimited will stay!

Sprint CEO defends spending such a huge amount of money on getting the iPhone:
»www.bgr.com/2012/03/21/s ··· -iphone/

Last year in October, Hesse revealed that the company is placing a massive $15.5 billion bet on Apple’s iPhone, and in a recent interview with the GSMA’s Mobile World Live blog, Hesse defended the move, which has been criticized by a number of industry watchers. Read on for more.

“Subsidises are heavy for the iPhone. This is the reason why a high percentage of new customers is important,” Hesse said during the interview. “But iPhone customers have a lower level of churn and they actually use less data on average than a high-end 4G Android device. So from a cost point of view and a customer lifetime value perspective. They’re more profitable than the average smartphone customer.”

Hesse stated that iPhone sales have “exceeded expectations” thus far, and he claimed Sprint is stealing customers away from AT&T and Verizon Wireless thanks to the iPhone. ”Four out of every 10 iPhones we sold [in the fourth quarter] are for new customers. That’s roughly double the rate of either of our competitors, so we’re pulling a lot of customers from our competitors,” he said.

”The marriage made in heaven is unlimited plus the iPhone,” he said during the interview. “My plan is to continue for as long as we can, hopefully forever. The customers have spoken very clearly on this: they like simplicity and unlimited. It’s a differentiator in the market.”


nickn
@wideopenwest.com

nickn

Anon

WiMAX

Why is sprint deploying LTE when they have a sizable WiMAX network set up? They should forget LTE and focus on continuing to build their current network. It would be cheaper, and many sprint customers already have a WiMAX capable device.

••••

Cheese
Premium Member
join:2003-10-26
Naples, FL

Cheese

Premium Member

So...this douchebag whines....

"Like most investors, Moffett has long whined about absolutely any and all network upgrade costs"

About upgrades? Which is part of ANY company and he complains about it? Wow...

•••
Phillip
I Need A Nap
join:2004-12-21
Hatboro, PA

Phillip

Member

3 Reasions for an analyst report

1) The market area is about to implode and the top feeders want the bottom feeders to invest so nobody realizes the top feeders are pulling out.

2) Forcing a company into submissiveness as outlandish regulatory changes are pushed.

3) Hostel take over

My best guess is the 3rd one. ATT or T-Mobile will make a move on Sprint. And before that happens, I will try to buy Sprint stock at 1.50 a shire and double or triple my money.

•••••••

Edrick
I aspire to tell the story of a lifetime
Premium Member
join:2004-09-11
San Diego, CA

Edrick

Premium Member

Walstreet

What an absolute waste and crooked organization that really does no good.

jd
@verizon.net

jd

Anon

Re: Walstreet

Walstreet, a new financial investment big box store. Low, low, rollback prices.
BiggA
Premium Member
join:2005-11-23
Central CT
·Frontier FiberOp..
Asus RT-AC68

BiggA

Premium Member

Thank you captain obvious

We already knew that Sprint is in bad shape. This is just making what we already knew more mainstream. Sprint is in bad shape, doesn't have a coherent plan, and has a horrible network.

Unlimited data will survive, it is about their only differentiating point left. Their network sucks, they are almost as expensive as Verizon, they don't have the coolest phones anymore, and they don't have the dense urban network that T-Mobile has.

dmeyer6
join:2002-08-14
Austin, TX

dmeyer6

Member

Nextel and then Wimax

It was a stupid move to buy Nextel and then go with WiMax as a premature 4G technology.

Sprint has made so many stupid mistakes. I'm surprised they have made it this far without bankruptcy.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD

Premium Member

Re: Nextel and then Wimax

said by dmeyer6:

It was a stupid move to buy Nextel and then go with WiMax as a premature 4G technology.

Sprint has made so many stupid mistakes. I'm surprised they have made it this far without bankruptcy.

I'm still scra6tching my head about Nextel, but you have to admit that for WiMax, Sprint got in with a backup plan and got out quickly (failed fast)

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK

Premium Member

Tanking the stock, it makes their worth / debt ratio

... much worse, threatens capital, and helps drive them into bankruptcy. Which if then happens, Craig Moffett claps himself on the back for "calling it" in advance.

.... when actually, he would be a major reason why it happened.

Perception becomes reality.

On the bright side, if you're a gambler, the stock is on sale.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Tanking the stock, it makes their worth / debt ratio

A 4.5% single day decline isn't exactly "tanking" a stock's pps, especially since it's already rebounded 1.4%. Look at Sprint's history over multiple years. Its management team has done a great job of destroying value well before Moffett released this bit of work.

Shame on Karl for an inflammatory headline.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Question, if Sprint goes into "restructuring"....

... doesn't that mean they can void the Iphone contract?
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Question, if Sprint goes into "restructuring"....

Depends on the judge overseeing the bankruptcy proceeding.

GeekJedi
RF is Good For You
Premium Member
join:2001-06-21
Mukwonago, WI
ARRIS TM1602
Apple AirPort Extreme (2013)
Ooma Telo

GeekJedi

Premium Member

Here we go again...

Have you ever had the feeling that Karl is rooting for Sprint to drop unlimited data? He certainly spends a whole lot of time predicting it's demise.

••••••••
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

bad quarter

Sprint bounces back from these kinds of things.. they'll report a BAD quarter from all the deals that are and going south (losing money) and then move on.. This happened after the big loss from acquiring Nextel and ultimately losing half those push to talk subscribers to Verizon.

Bankruptcy? Not likely... they are in the process of upgraiding to 4g/lte.. if they go bankrupt they'll never get loans below 10% from anyone, so they better make sure they're loading up the debt that completely pays for their 4g equipment in a nationwide foorprint before trying that stunt.

marke
@tmodns.net

marke

Anon

mobile t mobile

Apple should offer the major carriers like t mobile the iPhone so that bankruptcy doesn't take them down as well .maybe t mobile will buy part of sprint when they go bankrupt.

BillRoland
Premium Member
join:2001-01-21
Ocala, FL

BillRoland

Premium Member

Moffett is pretty much dead on

When you drop all the fanboyism and look at the facts, what you're left with is a wreck of a company with an empty suit CEO. They just literally throw stuff at the wall to see what sticks. WiMAX...why not. LightSquared...sure that's a great idea. Pay huge money for the iPhone when literally anyone who wanted one got one years ago? Sure, that sounds great! And all the while Hesse has the soundbites to charm Wall Street and the fanboys. When the board actively slaps the CEO around, you know its bad. Hesse will be shown the door soon enough. If they are smart they will bring in ex-Nextel CEO Tim Donahue...he might be able to salvage something.

Sprint is the Titanic of the wireless industry.
fiberguy2
My views are my own.
Premium Member
join:2005-05-20

fiberguy2

Premium Member

Well no duh!

"....insisting the company faces "a very legitimate risk" of bankruptcy. The reasons for the downgrade are obvious...."

Of course there is a legitimate "risk"... because he's downgrading them. Talk about a double punch! So what comes first here, the chicken or the egg? .. or, the risk of or the downgrade? In this case, he downgrades, people run, they take the hit, Sprint goes bankrupt. Pretty clever if you ask me. I wonder how much AT&T paid them to downgrade Sprint? If this was the case, just saying, perhaps this would have been a better move over trying to buy Tmo to put them to bed.

Of course I am not saying AT&T did this, but I could totally see this coming from inside the big-boy's network.
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