Revisiting Sprint Yet Again And My Next Stop [View article]
Agreed. CLWR has a significant amount of useful spectrum and Hesse is their best friend. S is a no brainer investment.
Since Dan joined, they have:
1) Shed Nextel - the fiasco of the century 2) Improved customer service by orders of magnitude. 3) Taken control of Clearwire and their vast spectrum. 4) Brought huge amounts of spectrum to bear without CAPEX. 5) Become the greenest cellco in NA. 6) Landed the iPhone deal while vulnerable (Some might say that their bet on the Pre made it a sure bet that Apple would want them). 7) Lowered Churn WHILE SHEDDING NEXTEL - AMAZING! 8) Consistently raise ARPU!
You've got to give Hesse credit. It doesn't seem like rocket science, but Sprint was very very humble not too long ago. It could have gone poorly, but they are firing on all 8 cylinders. Dan is the man!
Revisiting Sprint Yet Again And My Next Stop [View article]
Now we are getting a little crazy. What is a smartphone going to do with 1.7 Gbps today?
I think the point is made that <1 GHz cannot be of any use going forward, so Sprint and CLWR have far far better spectrum than VZN and T (although VZN just did a very smart thing with the MSOs). You need microwave RANs and Millimeter wave WANs to get good quality service to the population of devices expected in a typical RAN. Today, 300 Mbps is good enough to stream compressed HD video at a decent frame rate, and that's what we need - all we need today.
The mortgage REIT sector is lit up green following Western Asset Mortgage's (WMC +7.3%) big dividend increase last night and the upping of its book value by 12% since June 30. That jump in book value could have investors wondering what other mREITs might be harboring such good news. [View news story]
So Western hasn't even been in the market a year! Anyone can leverage a simple spread to produce a yield. They haven't said what they've done - maybe luck, maybe skill, maybe BS, but certainly not experience. Why should that news move other REITs.
Don't get me wrong - I'm long NLY and love mREITs, but what's the point? There are few if any day-traders here, so...
Sprint (S +7%) and Clearwire (CLWR +8.3%) jump after the Street takes kindly to Sprint CEO Dan Hesse's Goldman conference remarks. Hesse forecasts "significant consolidation" will hit the U.S. mobile industry (previous); claims the carrier has doubled its retention rate for defecting Nextel subs as it prepares to shut down Nextel's network; and suggests Sprint is open to making spectrum purchases. M&A targets Leap Wireless (LEAP +2.5%) and MetroPCS (PCS +3.9%) are also higher. [View news story]
CLWR is the most obvious. Spectral synergies, operating relationships, known billing synergies, executive relationships, an operating network, and the elephant - a huge chunk of the MOST valuable spectrum. The current relationship is definitely favorable for Sprint, but it could get away from them. An acq might be a little more work, but it would lock down a very synergistic relationship.
What about Canada? Not smart enough to know if there are opportunities there.
Sprint Is Enjoying Strong iPhone 5 Sales And Sees Potential Wireless Consolidation [View article]
Good Article. More on the T-M thing. BTW - Goldman seems to look at it only from a financial perspective, never even mentioning one of the many technical challenges. They may not understand them.
While LTE might be a unifier, blurring those heavy boundaries between CDMA and GSM, TM is a nationwide carrier, and it's customers already have a choice to leave or stay. Clear, MPCS, US Cell, and several other regional or multi-regional players' customers would probably have more interest in staying with Sprint as an acquirer. I think there are very strong business, technical and relational opportunities for S in this area, but the only one for TM is it's size. Although that is compelling, Hesse is smarter than that.
The Mortgage REIT Boom; When Will The Bubble Burst? [View article]
I agree. The Author presented some of the risks well. He did fail to note that Annaly has managed through such a scenario once before - successfully. That might or might not give them a leg-up on other mREITs, but it does reduce the likelihood of a wipeout.
Suffice it to say, we probably have a dozen or more very good quarterly dividends ahead of us that would render a modest capital drop virtually meaningless. Of course, avoiding that should be our goal.
Annaly Capital Management (NLY) declares $0.50/share quarterly dividend, 9.1% decrease from prior dividend of $0.55. Forward yield 11.57%. For shareholders of record Oct 01. Payable Oct 29. Ex-div date Sep 27. (PR) [View news story]
This was a steeper drop than I expected. Spread is still large, prepayments are still low, and CPR is still low, so why such a drop?
I'll bet the answer will lie in their hedging. Maybe they over bet on the conservative side and lost a lot in swaps. Thoughts?
Still long, but AGNC / CIM are looking a bit better to me after this news.
Annaly (NLY -1.3%) is downgraded to Underperform (Sell) at Macquarie. No details are yet available, but here's a preview: Exposure to the flattish yield curve and prepayment risk. [View news story]
I'll remain long as well, however, I wonder what they mean by 'Exposure to the flattish yield curve and prepayment risk' that we don't already have factored in? Flattish yield curve - so what. Prepayment risk - I wonder what this has to do with Bernanke? Is there an expectation that prepayments will accelerate? What will cause that?
If someone can provide evidence of a meaningful change in the economic landscape, that would be worthwhile. Otherwise, this is no news.
Apple's Win Over Samsung Is A Kick In The Teeth For Google [View article]
That's pretty funny. I'll neither long nor short them. You can never tell what might happen. Just listen to that foremans rationale for the jury's decision, and you'd be wise to avoid all these parties in the open market - it's insane.
I do hope you get rich, but I'll be getting rich elsewhere, thank you very much.
Apple's Win Over Samsung Is A Kick In The Teeth For Google [View article]
I've used both the iPhone and the Droid. I'd certainly want my doting mother to use the iPhone, but it drove me nuts! Love the Droid so much that I put CM9 on my TouchPad just to have that superior Android experience.
Granted, for most folks, the iPhone is the better choice - that's just the way it is. But crappier? Au contraire!
Apple's Win Over Samsung Is A Kick In The Teeth For Google [View article]
IPaq? I had a palm Treo. It had the same rounded corners. My sister had a centro. It too. Apple didn't even have a phone then, nevermind a patent on rounded corners. Oh - Those had keyboards you say? Well what about the Zire? Again - when Apple had the Mac, and little else. They hadn't copied Palm yet.
I hope Samsung appeals. Not that I have any particular liking for them or their products. I just find this verdict offensive to anyone with common sense. I also listened to what the jury foreman had to say after the verdict, and I was stunned that the judge let it happen.
To those who say Apple was innovative. BS! Apple wasn't even that innovative when they made the Newton. Palm was always WAY ahead of Apple on the innovation scale. Apple (Jobs) was simply good at creating demand. That's a good thing, but please don't call it innovation or thinking different.
MetroPCS (PCS -5.2%) and Leap Wireless (LEAP -3.5%) slide after T-Mobile decides to revive its unlimited data plans. Sprint (S -1.5%) is off slightly. Low-end carriers have clearly decided to challenge market leaders AT&T (T) and Verizon Wireless (VZ, VOD) on price, hoping the latter's de facto price hikes will leave them vulnerable. Will the AT&T/Verizon "duopoly" continue gaining share, or are their latest pricing moves an act of hubris that will backfire? [View news story]
I think T and VZN will indeed be affected, but just like Phillip Morris, they will always have a certain addicted customer and they will savage them.
This is competition! If TMob couldn't afford to do it, they wouldn't. You have to remember that there are no COGS in offering cellphone service. The OPEX is maintenance and billing - administrative functions - and the CAPEX is where all the money goes. It is neither cheap nor easy to build a network and subsidize phones, but that's the business. You have to be smarter about those two things, and only Sprint has shown such smarts. Now everyone is scrambling to be competitive again.
S started this when it rolled out WiMAX as the first 4G service at the same time it made a conscious effort to right it's horrendous customer service record, AND make a push to be environmentally judicious. They are now the lead goose, despite the fact that T and VGZ are bigger. Sprint is setting the pace for the industry.
Things Will Keep Working For Sprint [View article]
Excellent Article! Couple of objections...
1) "leaving the stone-age speeds that plagued its old 3G network" - Sprint was the FIRST carrier to offer 4G speeds and kick this industry in the pants. They were stuck with WiMAX, which was a viable technology but one that the other carriers were pooh-pooing. I think Sprint knew that there was a better than even chance that their 4G would fail, but that they would enjoy a first mover advantage with the techies, and that's just what happened. It was a risky decision that proved to be spot-on. BTW - Hesse's commitment to Customer Service was an obvious decision that also proved to be spot on (duh).
2) "Sprint was actually at the forefront of something." Read above. Hesse has always had the environment as one of his chief concerns. It's been company policy for well over a year. This is simply a necessary extension of that. That said, Yes, it will be a big benefit for Sprint customers.
3) "whether it can use these developments to stay hot". Sprint is doing so many thing differently than it's fatter bretheren - some of which may not be recognized for some time. Metro Ethernet, Clearwire, MVNO emphasis (Read: Prepaid), Network vision, just to name a few.
This looks so much like Cisco vs. Lucent a decade and a half ago. The established 'analysts' gave Cisco little quarter, but they mowed down Lucent with a venegance. Sprint looks the same.
Sprint's (S) latest tactic for halting share losses to AT&T and Verizon: the carrier is offering $400 of in-store credit to families who switch 3 or more lines from another carrier to a Sprint Everything Data Share or Simply Everything Data plan. The promo, which lasts until Sep. 15, comes shortly after Sprint began offering $100 AmEx gift cards to new customers, and led the way in slashing iPhone 4S prices. [View news story]
I'm with you Joshua, but I have to agree with Mr. BBQ too. I have 4 lines and an Airave, and am paying $250 a month. It's obscene. Yes, T and VZN are worse, but that's not a good enough excuse. The problem is lack of competition. However, Sprint is well on it's way to leveling that playing field. This rebate stuff, although it doesn't really help loyal existing customers, may be the precursor to a price drop. They need more customers right now, and exiting customers aren't going anywhere...today. Tomorrow, the grumbling will start, but they'll have their growing base.
Face it, they're making very good money and their spend is virtually all CapEx - phones and the network. I love Sprint and do know the competition. However, I will not pay $70 a line for very long.
Revisiting Sprint Yet Again And My Next Stop [View article]
Since Dan joined, they have:
1) Shed Nextel - the fiasco of the century
2) Improved customer service by orders of magnitude.
3) Taken control of Clearwire and their vast spectrum.
4) Brought huge amounts of spectrum to bear without CAPEX.
5) Become the greenest cellco in NA.
6) Landed the iPhone deal while vulnerable (Some might say that their bet on the Pre made it a sure bet that Apple would want them).
7) Lowered Churn WHILE SHEDDING NEXTEL - AMAZING!
8) Consistently raise ARPU!
You've got to give Hesse credit. It doesn't seem like rocket science, but Sprint was very very humble not too long ago. It could have gone poorly, but they are firing on all 8 cylinders. Dan is the man!
Revisiting Sprint Yet Again And My Next Stop [View article]
I think the point is made that <1 GHz cannot be of any use going forward, so Sprint and CLWR have far far better spectrum than VZN and T (although VZN just did a very smart thing with the MSOs). You need microwave RANs and Millimeter wave WANs to get good quality service to the population of devices expected in a typical RAN. Today, 300 Mbps is good enough to stream compressed HD video at a decent frame rate, and that's what we need - all we need today.
The mortgage REIT sector is lit up green following Western Asset Mortgage's (WMC +7.3%) big dividend increase last night and the upping of its book value by 12% since June 30. That jump in book value could have investors wondering what other mREITs might be harboring such good news. [View news story]
Don't get me wrong - I'm long NLY and love mREITs, but what's the point? There are few if any day-traders here, so...
Sprint (S +7%) and Clearwire (CLWR +8.3%) jump after the Street takes kindly to Sprint CEO Dan Hesse's Goldman conference remarks. Hesse forecasts "significant consolidation" will hit the U.S. mobile industry (previous); claims the carrier has doubled its retention rate for defecting Nextel subs as it prepares to shut down Nextel's network; and suggests Sprint is open to making spectrum purchases. M&A targets Leap Wireless (LEAP +2.5%) and MetroPCS (PCS +3.9%) are also higher. [View news story]
What about Canada? Not smart enough to know if there are opportunities there.
Sprint Is Enjoying Strong iPhone 5 Sales And Sees Potential Wireless Consolidation [View article]
While LTE might be a unifier, blurring those heavy boundaries between CDMA and GSM, TM is a nationwide carrier, and it's customers already have a choice to leave or stay. Clear, MPCS, US Cell, and several other regional or multi-regional players' customers would probably have more interest in staying with Sprint as an acquirer. I think there are very strong business, technical and relational opportunities for S in this area, but the only one for TM is it's size. Although that is compelling, Hesse is smarter than that.
The Mortgage REIT Boom; When Will The Bubble Burst? [View article]
The Mortgage REIT Boom; When Will The Bubble Burst? [View article]
Suffice it to say, we probably have a dozen or more very good quarterly dividends ahead of us that would render a modest capital drop virtually meaningless. Of course, avoiding that should be our goal.
Annaly Capital Management (NLY) declares $0.50/share quarterly dividend, 9.1% decrease from prior dividend of $0.55. Forward yield 11.57%. For shareholders of record Oct 01. Payable Oct 29. Ex-div date Sep 27. (PR) [View news story]
I'll bet the answer will lie in their hedging. Maybe they over bet on the conservative side and lost a lot in swaps. Thoughts?
Still long, but AGNC / CIM are looking a bit better to me after this news.
Annaly (NLY -1.3%) is downgraded to Underperform (Sell) at Macquarie. No details are yet available, but here's a preview: Exposure to the flattish yield curve and prepayment risk. [View news story]
If someone can provide evidence of a meaningful change in the economic landscape, that would be worthwhile. Otherwise, this is no news.
Apple's Win Over Samsung Is A Kick In The Teeth For Google [View article]
I do hope you get rich, but I'll be getting rich elsewhere, thank you very much.
Apple's Win Over Samsung Is A Kick In The Teeth For Google [View article]
Granted, for most folks, the iPhone is the better choice - that's just the way it is. But crappier? Au contraire!
Apple's Win Over Samsung Is A Kick In The Teeth For Google [View article]
I hope Samsung appeals. Not that I have any particular liking for them or their products. I just find this verdict offensive to anyone with common sense. I also listened to what the jury foreman had to say after the verdict, and I was stunned that the judge let it happen.
To those who say Apple was innovative. BS! Apple wasn't even that innovative when they made the Newton. Palm was always WAY ahead of Apple on the innovation scale. Apple (Jobs) was simply good at creating demand. That's a good thing, but please don't call it innovation or thinking different.
MetroPCS (PCS -5.2%) and Leap Wireless (LEAP -3.5%) slide after T-Mobile decides to revive its unlimited data plans. Sprint (S -1.5%) is off slightly. Low-end carriers have clearly decided to challenge market leaders AT&T (T) and Verizon Wireless (VZ, VOD) on price, hoping the latter's de facto price hikes will leave them vulnerable. Will the AT&T/Verizon "duopoly" continue gaining share, or are their latest pricing moves an act of hubris that will backfire? [View news story]
This is competition! If TMob couldn't afford to do it, they wouldn't. You have to remember that there are no COGS in offering cellphone service. The OPEX is maintenance and billing - administrative functions - and the CAPEX is where all the money goes. It is neither cheap nor easy to build a network and subsidize phones, but that's the business. You have to be smarter about those two things, and only Sprint has shown such smarts. Now everyone is scrambling to be competitive again.
S started this when it rolled out WiMAX as the first 4G service at the same time it made a conscious effort to right it's horrendous customer service record, AND make a push to be environmentally judicious. They are now the lead goose, despite the fact that T and VGZ are bigger. Sprint is setting the pace for the industry.
Things Will Keep Working For Sprint [View article]
1) "leaving the stone-age speeds that plagued its old 3G network" - Sprint was the FIRST carrier to offer 4G speeds and kick this industry in the pants. They were stuck with WiMAX, which was a viable technology but one that the other carriers were pooh-pooing. I think Sprint knew that there was a better than even chance that their 4G would fail, but that they would enjoy a first mover advantage with the techies, and that's just what happened. It was a risky decision that proved to be spot-on. BTW - Hesse's commitment to Customer Service was an obvious decision that also proved to be spot on (duh).
2) "Sprint was actually at the forefront of something." Read above. Hesse has always had the environment as one of his chief concerns. It's been company policy for well over a year. This is simply a necessary extension of that. That said, Yes, it will be a big benefit for Sprint customers.
3) "whether it can use these developments to stay hot". Sprint is doing so many thing differently than it's fatter bretheren - some of which may not be recognized for some time. Metro Ethernet, Clearwire, MVNO emphasis (Read: Prepaid), Network vision, just to name a few.
This looks so much like Cisco vs. Lucent a decade and a half ago. The established 'analysts' gave Cisco little quarter, but they mowed down Lucent with a venegance. Sprint looks the same.
Sprint's (S) latest tactic for halting share losses to AT&T and Verizon: the carrier is offering $400 of in-store credit to families who switch 3 or more lines from another carrier to a Sprint Everything Data Share or Simply Everything Data plan. The promo, which lasts until Sep. 15, comes shortly after Sprint began offering $100 AmEx gift cards to new customers, and led the way in slashing iPhone 4S prices. [View news story]
Face it, they're making very good money and their spend is virtually all CapEx - phones and the network. I love Sprint and do know the competition. However, I will not pay $70 a line for very long.