Equity4all

Earnings Preview: Sprint Nextel Corporation

Don't get your hopes up. If history is any guide, they return 4% on equity so, that should translate into $0.2/share in a good year. If I give them a PE of 20 (which I wouldn't since they haven't demonstrated that they can grow with the big boys) that would give them a share price of $4. But, since they have been shrinking rather than growing the top and bottom lines, I would give them a much lower PE ratio which of course would further depress the stock price.

As Cramer aptly stated the other night; stocks that sell for less than $10 can cost you big time, and they are selling for less than $10 for a reason. A $1 move on a $10 stock is a 10% move. As the price declines, subsequent decrements are magnified in percentage terms.
Most of the time 'fallen Angels' such as S are there due to poor management, culture clashes and poor execution in all functional areas. A good example of that would be Lucent before its merger with Alcatel and Alcatel Lucent after the merger. Mergers don't save bad companies.

Another thing to look at is their debt to equity ratio and how many times they cover interest payments. Their bonds are rated junk. Therefore, I might take a stab at their bonds, but certainly not their stock.

I am sure that many of you are S employees trying to hype the company and move the stock price in a northerly direction. My advice would be to go out and win new customers while taking care of your existing one's and stay off of these message boards. Let your actions and the financial fundamentals do your talking. So far, the results and performance of this company and its stock price is abysmal at best.

My advice, go buy a cd...at least you'll sleep well.