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Gerard Hallaren, CFA  

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  • Did BlackBerry's Profit Come At Too High Of A Cost? [View article]
    Chen clarified his comment to handset profitability to say they have had positive gross profits on handsets for the last 3 or 4 Quarters.
    Mar 29, 2015. 09:09 PM | 3 Likes Like |Link to Comment
  • What Do 1,750 New Stores Mean For Sprint? [View article]
    The big one is that at 80% or more it has to include Spirnt's results in its financial statements. As long as Sprint is making large losses I believe SoftBank will be reluctant to do this.
    Mar 29, 2015. 09:07 PM | Likes Like |Link to Comment
  • What Do 1,750 New Stores Mean For Sprint? [View article]
    BTW -- you might want to check out Sprint’s new WPaaS (Workplace as a Service) This is a soup to nuts business offering, likely BES based. $200/user/month.
    Mar 23, 2015. 02:42 PM | Likes Like |Link to Comment
  • What Do 1,750 New Stores Mean For Sprint? [View article]
    We all think of this stuff differently and that is the beauty of SA. My primary fear is that SoftBank will use its control to the detriment of other Sprint Shareholders. There are an abundance of control provisions granting minority shareholders what seem to be a very good rights package in the context of controlled companies. This is hardwired in my thinking.

    You may also recall that following the close, SoftBank made open market purchases of roughly 72MM shares at an average price of $6.69 to get to just under 80% from the 78% they got on the deal.

    Personally, I have no recollection of any restrictions on SoftBank selling Sprint shares. A VERY quick review of the closing 8K yielded nothing about selling restrictions. If SoftBank dropped below 50% ownership they lose a lot of rights. There are also some negative consequences if SoftBank goes over 80%.
    Mar 23, 2015. 02:28 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    What is in SoftBank's portfolio that you believe is not successful besides Sprint?
    Mar 16, 2015. 09:07 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    For the record, TMUS added 4.9MM Postpaid subs, 1.2MM Prepaid customers, and 2.2MM wholesale customers for a total of 8.3MM total net additions. Sprint lost about 654K Postpaid subs, 461K prepaid customers and added 2.1MM wholesale customer. At $1,000 per Postpaid subscriber, $250 per prepaid customer, and $100 per wholesale customer, TMUS created about 5.4B in customer value or about $6.23 per share. Sprint lost about $562MM or $0.69 per share in customer value. Sprint stock was down more than $5.00 per share YE-YE and T-Mobile, declined about $6.70 during the period. Seems like this might be an opportunity for the two smaller competitors.
    Mar 15, 2015. 05:37 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    In dealing with a certain class of SA contributors I endeavor to use softer language so as not to inflict emotional pain. Let me be very clear. I forecast, expect, anticipate, and have invested on Sprint's network improvement. At year end Root Metrics reported that Sprint's Text and Voice networks were competitive with Verizon and AT&T and better than T-Mobile's. For customers with HD phones, Sprint provided a better experience.

    Sprint has not yet succeeded in improving its data network in a consistent manner. I live outside of Denver where Sprint's data network is faster than AT&T or Verizon. I often travel to Greenville, SC where the firm that employs me is headquartered. There, Sprint is abysmal and Verizon and AT&T have substantively better networks. But then, neither Sprint nor Clearwire have deployed 2.5GHz in Greenville.

    My experience says it takes about a year for consumer perception to catch up with reality. My experience also says it is better to skate to where the puck is going than to where it is.
    Mar 15, 2015. 05:21 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    Not really. Legere UnCarrier's strategy has made many happy customers and brought major change to the industry. Look at the net additions. Just the same, T-Mobile's retention deteriorated to 45% in Q4/14 so maybe Legere's initial charm is getting thin.
    Mar 15, 2015. 05:11 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    I would give Marcelo some more time to prove himself. In a very short period of time, he went from hemorrhaging postpaid subs to holding the line.
    Mar 15, 2015. 05:06 PM | 1 Like Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    VZ, T, TMUS, all have the ability to finance spectrum purchases from here. Though I suspect TMUS will spend its money building out DISH's network. Then there are intermediaries like Aloha, Grain, and possibly tower companies who would love to purchase the spectrum and lease it back to the "needy carriers."
    Mar 15, 2015. 05:04 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    Your reaction tells me I was right to use soft language. Reality is that I expect, am forecasting, anticipating, and investing upon and not guessing Sprint's network will improve. At the same time, I recognize that it usually takes consumers about a year to perceive improvement.
    The Network Vision LTE plan was flawed from the start. It was an exercise in self deception. Sprint has the 1st bit of LTE up in one of the towns (metro pop ~2.0MM) where I live and it puts Verizon and AT&T to shame. This likely has as much to do with deployment strategy as with spectrum management. VZ and T endeavored to maximize reach. Sprint is focusing on capacity. BTW in the other town (metro pop ~250K,) VZ and T kick the crap out of Sprint and T-Mobile.
    Mar 15, 2015. 03:26 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    I think you need to examine your numbers. Think back a couple of years to the first phase of Network Vision. At that time, Sprint believed it would take about $600MM to transition the WiMAX network to LTE and a several of Billion to transition the 800 MHz and PCS bands. I would put no more faith in Dan Hesse than I would in a software salesperson. But we are talking additional zeros.
    Internally, Sprint has many that believe 2.5GHz is not useful. But even these guys believe the cost differential is no greater than 1.5 X PCS. 850 MHz is for the dougnut and beyond so its an apples and pork chop comparison. In a dense urban environment, I suspect the 2.5GHz deployment will actually cost less than PCS. There are more chips, base station options and supporting handsets for it that for PCS or 800 MHz.
    Mar 15, 2015. 03:19 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    Finally you said something with which I agree.
    Mar 15, 2015. 03:12 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    Get real. VZ, T, TMUs, and AMX can readily finance additional spectrum purchases. There is also a long line of intermediaries like American Tower, Crown Castle, Aloha, or Grain that would love to finance a sale and lease back of the spectrum.
    Mar 15, 2015. 03:10 PM | Likes Like |Link to Comment
  • Sprint: Don't Follow Executives Into Stock [View article]
    The Sprint investment thesis is simple. Its text performance is competitive with Verizon and AT&T, ditto for voice. Though where it offers HD voice, it is better. As they deploy the 2.5 GHz spectrum, data performance will likely move to the front of the pack.

    I agree with you. Massa Son let former CEO Dan Hess reign for too long. But that is over. Since Claure become CEO, the company's network and marketing has improved dramatically. Yes, it still has far to go but the bad old days are disappearing in the review mirror. I'd rather invest in the future than the past.
    Mar 15, 2015. 03:05 PM | Likes Like |Link to Comment
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