MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
There are certain time constraints in my responses. I could go into an extremely detailed statistical analysis which focuses on the relationship between technology and economic growth, and then I could further narrow in on companies which should shine most in such a world. The whole analysis would be supported with an instance of both investor-side and business-side asset correlation management.
But nobody believes it anyways. So, oh well.
I'd be better off jumping up and down like a loon and pretending that lawyers know finance. More people would believe me. Just go look at Cramer.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
My point isn't really that Sprint sucks. My point is that investors benefit more from PCS stock than from S stock. PCS stock plays a very, very useful, rare role for a portfolio.
There are plenty of Sprint-like companies. In fact, most of the S&P could be categorized as similarly positioned to Sprint. But there are only a small handful of companies like PCS.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Overall, I'd say Sprint is losing money just trying to keep customers from going to PCS.
If I'm PCS management, I say, let them keep losing money and then go relax and smoke a cigarette thinking about profits which have already materialized.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
I agree. The jump to 4G was a bigger jump for PCS than for the other guys. Providing quality has always been PCS' biggest weakness. It is interesting to imagine a future where that problem has been 99% eliminated.
It boils down to a company with zero weaknesses, other than maybe it needs to acquire SOME spectrum to expand profits more rapidly. Not a big problem.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
slcUTAH's opinion is spot on accurate.
The PCS phone meets a reasonable customer's needs, although just barely. But it meets the needs more so than most customers think. WiFi is really all most people need. But for even the truly picky that need great coverage for Internet everywhere, they have 4G and even 3G available in a large number of locations.
I'd say PCS reaches about 85% of the area that other large providers reach, in the areas that have PCS. About 25% of the time, my PCS signal is actually better than VZ and T. It is rather uncommon though.
The thrust of my argument though is that over the past two years, the signal which the average MetroPCS user gets has improved significantly, while the average Sprint user's signal has only improved mildly, even though they are paying almost double.
The gap will close even more going into Xmas because MetroPCS will release 6-7 LTE phones that cost around $100. This will increase sales substantially and get more users to switch to the 4G network. Once more users are on the 4G network, PCS can easily spend a tiny bit more money to extend its network coverage and fill in spots. Management waits to do things once they are cost efficient rather than pretty.
At Xmas time, everybody who can ought to switch to PCS. Heck, there will be an HD voice phone in Q1!!!!! That technology helps reduce the need for more spectrum, and it just might become possible that PCS needs much, much less spectrum than anybody ever thought. The evidence? So far they are very profitable with their limited spectrum.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Do whatever you like. Buy both with both hands if you like. I just personally think PCS is a great hold for a long, long time. It is buried deep into where investors should want to put their money.
Sprint on the other hand is quite speculative. It is losing money and has been for a long, long time.
With PCS it is much less about the current price of the stock rather than the quality of the stock. With Sprint, because the stock isn't one of high quality, it is more about buying low and selling high.
In other words, you could buy PCS and never sell it again in your lifetime and you'd be fine, for sure. Sprint holders cannot say that.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Quit wasting my focus on semantics.
PCS lost customers. Yes. Not the greatest of things which could happen. But frankly, it doesn't really hurt. Profit is there. That is much different than constantly losing money.
Money is the goal in case your forgot, and if customers are going to cause my equity to lose money, then get rid of them!
Tell you what. How about this? You keep your Sprint stock, and I'll keep my short position on puts in PCS open. Sounds like a deal to me.
The only thing keeping Sprint afloat is Virgin. Everything else in the company is losing money. Maybe not forever, but for a long time...
And now, just as profits already looked good for PCS, handset prices are falling even more. PCS will release 6-7 LTE handsets by year end.
No matter how much Sprint complains, there just isn't anywhere else besides PCS where somebody can get a high quality LTE phone with excellent service for $40 per month. Case closed.
The recession proof company.
Sprint on the other hand, needs the economy to do well.
But, I will say this about Sprint: I think that IF the economy ever did show any real life, Sprint would be first in line to benefit, well before Verizon or AT&T.
The future with Sprint's profits probably relies more on wireless Internet than phone service...
Dryships Is On Sale For A Limited Time [View article]
So in your book, being overpriced in the industry makes it ahead of the competition? As to profit growth, the company doesn't even make any money. It isn't a certainty that Dryships will be a profitable choice at all.
Also, the Dryships portion of the overall company is being valued at less than zero because it is a deeply negative equity company. It is like the Drybulk side is 2 billion underwater in ships which were overpaid for.
Buying companies which have bad reputations is not the smartest thing to do with your money. Not saying Dryships is definitely a losing investment, but the risk is not worth it at this point.
Why recommend Dryships equity when it has covertible debt yielding 15%-20%? Wouldn't that be the smarter choice for most investors, unless they were just gambling sheep?
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
I think PCS is a good core position to almost any portfolio at any price below $10. At that point, you have to take profits and wait for it to come back to Earth.
Sprint on the other hand isn't a buy unless there is a selloff soon.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
So PCS is a regional player. And? Is this bad in your book? A regional player that makes money every quarter is worse than a nationwide company which loses money every quarter?
Sprint's smartest move would be to try and sell some spectrum to PCS for some quick cash. Sprint has more spectrum than it needs.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
PCS does NOT have to merge with anybody. It has billions of dollars in cash ready to acquire spectrum, IF IT WANTS ANY.
In all likelihood, Sprint in particular is a great distressed candidate which may be forced to sell off some spectrum. You can't lose money forever.
Your standards must be much different than mine, but when a company tells me there are losing money, even once, I lose faith in management. You hear the same story every quarter for many, many years, and apparently think losing money is good.
Not saying Sprint is dead, but it has a LONG, LONG way to go before being profitable again.
Interestingly, I don't think Sprint could afford to buy PCS.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Agree with you nearly fully. The bottom line is PCS is regional, but if you are fortunate enough to have coverage, it is the best game in town. The stock tends to trade cheaply and with significantly more value than the other telecom stocks. This discount is unjustified in my opinion.
What Verizon, AT&T, and Sprint longs are missing requires a trip to best buy. Look how cheap TVs are. Even the cheapest 40" TV looks awesome with essentially a perfect picture. Why pay for a Sony when a Vizio does 99.9% for 1/2 the price?
Same as PCS versus Verizon or Sprint if you ask me.
Interestingly, Both Sony and Sprint are losing money.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
But nobody believes it anyways. So, oh well.
I'd be better off jumping up and down like a loon and pretending that lawyers know finance. More people would believe me. Just go look at Cramer.
So take the article on its face.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
There are plenty of Sprint-like companies. In fact, most of the S&P could be categorized as similarly positioned to Sprint. But there are only a small handful of companies like PCS.
That's all. And PCS management knows this.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
LOL.
Wow.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
I said sell Sprint now. Certainly not an emergency though.
Lets just go ahead and pretend you're the smart guy, and I'm the annoying commenter.
LOL.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
If I'm PCS management, I say, let them keep losing money and then go relax and smoke a cigarette thinking about profits which have already materialized.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
It boils down to a company with zero weaknesses, other than maybe it needs to acquire SOME spectrum to expand profits more rapidly. Not a big problem.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
The PCS phone meets a reasonable customer's needs, although just barely. But it meets the needs more so than most customers think. WiFi is really all most people need. But for even the truly picky that need great coverage for Internet everywhere, they have 4G and even 3G available in a large number of locations.
I'd say PCS reaches about 85% of the area that other large providers reach, in the areas that have PCS. About 25% of the time, my PCS signal is actually better than VZ and T. It is rather uncommon though.
The thrust of my argument though is that over the past two years, the signal which the average MetroPCS user gets has improved significantly, while the average Sprint user's signal has only improved mildly, even though they are paying almost double.
The gap will close even more going into Xmas because MetroPCS will release 6-7 LTE phones that cost around $100. This will increase sales substantially and get more users to switch to the 4G network. Once more users are on the 4G network, PCS can easily spend a tiny bit more money to extend its network coverage and fill in spots. Management waits to do things once they are cost efficient rather than pretty.
At Xmas time, everybody who can ought to switch to PCS. Heck, there will be an HD voice phone in Q1!!!!! That technology helps reduce the need for more spectrum, and it just might become possible that PCS needs much, much less spectrum than anybody ever thought. The evidence? So far they are very profitable with their limited spectrum.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Sprint on the other hand is quite speculative. It is losing money and has been for a long, long time.
With PCS it is much less about the current price of the stock rather than the quality of the stock. With Sprint, because the stock isn't one of high quality, it is more about buying low and selling high.
In other words, you could buy PCS and never sell it again in your lifetime and you'd be fine, for sure. Sprint holders cannot say that.
$9, $10, $2, whatever...
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
PCS lost customers. Yes. Not the greatest of things which could happen. But frankly, it doesn't really hurt. Profit is there. That is much different than constantly losing money.
Money is the goal in case your forgot, and if customers are going to cause my equity to lose money, then get rid of them!
Tell you what. How about this? You keep your Sprint stock, and I'll keep my short position on puts in PCS open. Sounds like a deal to me.
The only thing keeping Sprint afloat is Virgin. Everything else in the company is losing money. Maybe not forever, but for a long time...
And now, just as profits already looked good for PCS, handset prices are falling even more. PCS will release 6-7 LTE handsets by year end.
No matter how much Sprint complains, there just isn't anywhere else besides PCS where somebody can get a high quality LTE phone with excellent service for $40 per month. Case closed.
The recession proof company.
Sprint on the other hand, needs the economy to do well.
But, I will say this about Sprint: I think that IF the economy ever did show any real life, Sprint would be first in line to benefit, well before Verizon or AT&T.
The future with Sprint's profits probably relies more on wireless Internet than phone service...
Dryships Is On Sale For A Limited Time [View article]
Also, the Dryships portion of the overall company is being valued at less than zero because it is a deeply negative equity company. It is like the Drybulk side is 2 billion underwater in ships which were overpaid for.
Buying companies which have bad reputations is not the smartest thing to do with your money. Not saying Dryships is definitely a losing investment, but the risk is not worth it at this point.
Why not buy Diana Shipping (DSX) instead?
Why recommend Dryships equity when it has covertible debt yielding 15%-20%? Wouldn't that be the smarter choice for most investors, unless they were just gambling sheep?
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Sprint on the other hand isn't a buy unless there is a selloff soon.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Current liabilities are $7.4 billion.
The company will continue losing money for at least two years.
About $2 billion in principal repayment is due by early 2014.
But as I said, the company shouldn't have any problem paying that unless losses really accelerated dramatically and lending became a problem.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
Sprint's smartest move would be to try and sell some spectrum to PCS for some quick cash. Sprint has more spectrum than it needs.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
In all likelihood, Sprint in particular is a great distressed candidate which may be forced to sell off some spectrum. You can't lose money forever.
Your standards must be much different than mine, but when a company tells me there are losing money, even once, I lose faith in management. You hear the same story every quarter for many, many years, and apparently think losing money is good.
Not saying Sprint is dead, but it has a LONG, LONG way to go before being profitable again.
Interestingly, I don't think Sprint could afford to buy PCS.
MetroPCS Shines As Phone Subsidies Plunge; Sprint Continues To Grow Unprofitably [View article]
What Verizon, AT&T, and Sprint longs are missing requires a trip to best buy. Look how cheap TVs are. Even the cheapest 40" TV looks awesome with essentially a perfect picture. Why pay for a Sony when a Vizio does 99.9% for 1/2 the price?
Same as PCS versus Verizon or Sprint if you ask me.
Interestingly, Both Sony and Sprint are losing money.