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Sprint (S -17.4%) and Clearwire (CLWR -24.5%) are both falling hard following Sprint's Q2...

Sprint (S -17.4%) and Clearwire (CLWR -24.5%) are both falling hard following Sprint's Q2 results and LightSquared deal. Sprint's 101K net postpaid subscriber loss was worse than Bloomberg's consensus forecast of 25K, and, as Bernstein notes, the company's OIBDA margin declined Y/Y and fell short of analyst estimates. (previously)

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Comments (7)
  • kmi
    , contributor
    Comments (4312) | Send Message
     
    Lightsquared was a bad choice and it effectively destroys a huge investment Sprint already has in Clearwire. It makes no sense.

     

    Sprint is suffering because it can't make up its mind and pick a freaking trajectory, and no one wants a piece of a company that doesn't even have an idea of where its future lies.
    28 Jul 2011, 03:13 PM Reply Like
  • catamount
    , contributor
    Comments (375) | Send Message
     
    Are you suggesting Lightsquared's spectrum is useless and that Clearwire's approach is better using Wimax (which has been mstly abandoned by the silicon industry in favor of LTE)?
    28 Jul 2011, 04:13 PM Reply Like
  • kmi
    , contributor
    Comments (4312) | Send Message
     
    For one lightsquared is having issues where its product is interfering with gps signals, and in order to resolve that they had to reduce some of the frequencies they use, i.e. they have spectrum issues.

     

    For another, Clearwire has in the past indicated an ability and a potential interest on switching to lte.

     

    Finally, Sprint has a huge investment and commitment to Clearwire which won't simply go away, and Sprint could have looked to exploit control of that spectrum in a dozen ways, it almost seems like it is now writing off that investment.
    28 Jul 2011, 08:43 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (8264) | Send Message
     
    Elsewhere I offer a suggestion out of this mess. Maybe Apple could buy Sprint. They have the cash. Sprint's problem is largely due to a lack of compelling product.

     

    I can haz iPhone? seekingalpha.com/artic...
    28 Jul 2011, 03:26 PM Reply Like
  • catamount
    , contributor
    Comments (375) | Send Message
     
    I'd rather see Century Link and Sprint merge.
    28 Jul 2011, 04:14 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (8264) | Send Message
     
    Sometimes 1+1=1. CenturyLink has shown itself no better for customers or shareholders than Qwest, which in turn was no better than US West.

     

    Apple, by contrast, could sell those local assets to CenturyLink, dump NexTel on Telmex, and have its own own pipe to the customer, for barely the cost of the spectrum.

     

    For a company with a brand and a product, it's a screaming buy.
    28 Jul 2011, 04:37 PM Reply Like
  • I_Love_Vegas
    , contributor
    Comments (4) | Send Message
     
    clearwire is toast... and is worth less than a piece of toast :)
    30 Jul 2011, 09:39 PM Reply Like
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