Value investing message boards image Log on |  Join ($$) Stock market forums image VF "How To" Guide        Welcome, guest! Learn about guest access                       
ValueForum.com Home

Related news from
Sun, 19 Jan 2020
20:15:50 +0000
Stocks That Fell to 3-Year Lows in the Week of Jan. 17
Gilead Sciences, Sprint, Macerich and EQT present buying opportunities Continue reading...
Thu, 16 Jan 2020
14:00:00 +0000
Direct Energy Works with Sprint for 100% Renewable Energy in Virginia Operations
Sprint (NYSE: S) and Direct Energy Renewable Services announced today that all of Sprint's more than 800 Virginia locations will now be served with 100% Renewable energy. This agreement includes Sprint's retail locations, cell phone towers, and Sprint's east coast corporate office in Reston, Virginia. These facilities will use more than 88,000 MWh per year. For Sprint, the effort is part of the recent corporate commitment to be carbon neutral across all of their operations by 2025.
Wed, 15 Jan 2020
17:54:42 +0000
Sprint’s Floundering Stock Cannot Tell a Lie
(Bloomberg Opinion) -- Traders who make a living betting on mergers still won’t touch T-Mobile US Inc. and Sprint Corp.’s deal with a 10-foot pole. The wireless carriers may have been able to butter up two federal regulatory authorities by using the wonders of a 5G-powered America to distract from their deal’s likely competitive harm. Even so, merger-arbitrage traders live in a world of mathematical probabilities informed by laws and legal precedents, and on that basis, it’s hard to imagine that the judge presiding over a case brought by a group of state attorneys general opposing the deal will rule in the companies’ favor. Lawyers for both sides each delivered closing arguments Wednesday, with a decision from U.S. District Judge Victor Marrero expected to come some time in February. Analysts largely view the odds as a toss-up, if not slightly tipped in T-Mobile and Sprint’s favor. But the equity market paints a meaningfully different picture: The per-share value of T-Mobile's offer is 67% higher than where Sprint's shares are trading, by far the biggest spread of any pending U.S. deal. The wide gap implies that traders see an extremely low likelihood that the transaction gets done, and Sprint options activity is sending the same signal.Of course, this also means that if the companies do win in court, some traders popping antacids right now stand to make a substantial return. But for the most part, arbitrageurs have chosen to stay away. “This is one of those seminal situations in merger arb history,” said Roy Behren, a portfolio manager for the Merger Fund at Westchester Capital Management, which oversees $4 billion of assets. He found T-Mobile and Sprint’s arguments persuasive — that together the companies will be able to build out a nationwide 5G service faster, and that Sprint doesn't have the capital or scale it needs to compete. But the potential downside is painfully large, and so it’s simply too hard to make a bet on what will happen. “We like the case, but that doesn’t mean we want to risk shareholders’ money on something where we don’t have a huge conviction,” Behren said in a phone interview. The case may come down to Dish Network Corp. and its assigned role in ensuring the U.S. wireless market remains competitive. Makan Delrahim, the head antitrust enforcer at the Department of Justice, is placing incredible faith in Dish that it can fill the hole Sprint leaves behind and become a formidable new competitor to T-Mobile, AT&T Inc. and Verizon Communications Inc., even though it will most likely take years for Dish to live up to those expectations.T-Mobile has relied heavily on the argument that its brand as the customer-first “Un-carrier” means it can be trusted not to raise prices in the meantime, Blair Levin, an analyst for New Street Research, wrote in a report this week. The idea is that with Sprint, it will be able to spread out its network costs across a larger subscriber base and thus keep plan rates low. But as the state attorneys general have noted, AT&T and Verizon have greater scale and higher prices. Judges look at facts and precedent. Just as there was a compelling case to make against AT&T acquiring Time Warner last year in what amounted to a massive vertical consolidation of market power, it was hard to articulate this with facts and not just speculation about what might happen, because of the lack of precedent. The judge in that matter said early on, “I guess I have to get a crystal ball,” which judges do not like to do, and sure enough, he opted to stick with the facts as they were. The Justice Department and Federal Communications Commission have already given their blessing, which carries weight and could mean Judge Marrero will, too. But then if they could look in a crystal ball and see the consequence of doing so, they may not like what they see. Even the stock market knows that the deal shouldn’t go through.To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Wed, 15 Jan 2020
15:55:22 +0000
Sprint Trades At 40% Discount To T-Mobile Deal Terms
Investors appear to be under the impression T-Mobile Us Inc (NASDAQ: TMUS )'s proposed acquisition of Sprint Corp (NYSE: S ) will fail, as Sprint's stock is trading at a notable discount, The Wall Street ...
Wed, 15 Jan 2020
11:11:10 +0000
T-Mobile/Sprint urge court for deal approval, states warn of price hikes
A group of U.S. states suing to block T-Mobile US Inc from merging with Sprint Corp on Wednesday told a federal judge that the deal would raise prices for consumers, while the phone companies pushed back and emphasized they would compete aggressively to push prices down. T-Mobile and Sprint contend that the merger would enable the combined company to compete more effectively with dominant carriers Verizon Communications Inc and AT&T Inc. U.S. District Court Judge Victor Marrero, who will decide the fate of the merger, heard closing arguments in the case on Wednesday.
Tue, 14 Jan 2020
19:44:15 +0000
Reduce Your Exposure to These 2 Disappointing Stocks
Analysts recommend selling shares Continue reading...
Tue, 14 Jan 2020
16:55:13 +0000
Sprint Swaps Flash Market Doubts Over Fate of T-Mobile Tie-Up
(Bloomberg) -- Sprint Corp. bondholders have long bet that the wireless company’s acquisition by T-Mobile US Inc. will be allowed to go through, but by at least one measure, they’re growing more worried about the deal’s potential to get done.The cost to protect Sprint’s debt against default for five years has nearly doubled since September to around 333 basis points, according to ICE Data Services. Credit traders have been digesting court testimony from a takeover challenge brought by Democratic attorneys general. The attorneys, who hail from 13 states and the District of Columbia, say the merger could lead to higher prices and poorer service for consumers. Closing arguments in the case are scheduled for Wednesday.A victory for Sprint could be a boon to bondholders, potentially sending risk premiums on the debt tumbling as much as 200 basis points, Bloomberg Intelligence analyst Stephen Flynn wrote in a note. But if the deal falls apart, the consequences for Sprint could be dire. Flynn said in a separate note Tuesday that Sprint could face ratings downgrades and require a liquidity injection from backer SoftBank Group Corp. To some investors, the debt still looks too risky to buy.“What we try to look at is, ‘Are we being compensated for the risks?’” said John McClain, a portfolio manager at Diamond Hill Capital Management, which doesn’t own Sprint debt. “With Sprint, you absolutely are not.”A spokeswoman for Sprint declined to comment.Analysts are split on the potential outcome of the case. Cowen & Co. analyst Paul Gallant put the odds of a ruling favoring the states at 60% in a note earlier this month, while LightShed Partners’ Walt Piecyk sees a higher likelihood of a decision tipped toward the companies. The spread between T-Mobile’s offer price for Sprint and the trading price rose to around $3.29 a share on Tuesday from a low of 53 cents in May 2018. The higher the gap, the more uncertain the market is of a deal happening.Either outcome would have broad implications for the $1.3 trillion U.S. junk-bond market. With more than $35 billion of long-term debt outstanding, Sprint is the second-largest issuer of speculative-grade notes, according to data compiled by Bloomberg. T-Mobile is seeking a split debt structure for the combined company, with about 55% of the obligations carrying investment-grade ratings.Sprint, which carries single B range ratings from the three major credit ratings companies, has seen its debt surge since it agreed to combine with higher-rated T-Mobile. Its 7.785% bonds due in 2023 change hands for more than 108 cents on the dollar, up from a low of around 60 cents in early 2016.If the deal fails to close, Sprint will be left to contend with some $25 billion of debt that matures in the next five years, according to Bloomberg Intelligence. Flynn said in a note that SoftBank may need to invest $3 billion to $5 billion to help the wireless company deal with its upcoming maturities.“If it doesn’t go through, Sprint is on its own,” said Dave Novosel, a senior bond analyst at Gimme Credit. “At some point over the next year or two years, Sprint is going to need to consider coming to market to refinance some of that debt, which could pressure the market on the whole.\--With assistance from Scott Moritz.To contact the reporter on this story: Olivia Raimonde in New York at oraimonde@bloomberg.netTo contact the editors responsible for this story: Natalie Harrison at nharrison73@bloomberg.net, Claire BostonFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Fri, 10 Jan 2020
13:37:01 +0000
AT&T (T) Gears Up for HBO Max Launch With Preview Channel
The transition is likely to take place in Spring 2020 ahead of HBO Max's official debut in May, supplementing AT&T's (T) broader original content and marketing focus on the streaming service.
Thu, 09 Jan 2020
19:32:16 +0000
U.S. Probe of T-Mobile-Sprint Deal Was ‘Cursory,’ States Say
(Bloomberg) -- States suing to block T-Mobile US Inc.’s proposed acquisition of Sprint Corp. urged the federal judge overseeing the landmark antitrust trial not to defer to the Trump administration’s approval of the $26.5 billion deal.Lawyers for New York and California, which are leading the lawsuit for the states, said in a filing late Wednesday in Manhattan that the deal’s approval by the Justice Department and the Federal Communications Commission doesn’t carry any special weight and should be ignored by the judge.“The federal government approved the merger with what appears to be only a cursory examination of the approval conditions,” the states said, and the decision was “inconsistent” with its past opposition to consolidation in the wireless market.The government had asked in a Dec. 20 filing that its approvals be given deference. The response comes as T-Mobile and the states are preparing for closing arguments in the lawsuit next week before U.S. District Judge Victor Marrero. The closings will follow two weeks of testimony in December in which the states tried to show that the combination of the third- and fourth-largest wireless carriers would lead to higher prices.The Justice Department’s antitrust division and the FCC signed off on the merger after the companies agreed to sell assets to Dish Network Corp. to set up a new wireless competitor. That remedy is central to T-Mobile’s argument to Marrero.Read MoreT-Mobile’s Sprint Deal Looks Iffy to Traders as Skepticism GrowsTexts Show DOJ Effort to Enlist Senators in T-Mobile DealDish Would Compete With Giants ‘From Day One,’ Ergen SaysSprint Judge Questions Claim That Deal Would Hurt CustomersDuring the trial, the states showed that the head of the antitrust division, Makan Delrahim, took unusual steps to get the deal done, exchanging text messages with Dish Chairman Charlie Ergen. At one point during negotiations, Delrahim suggested Ergen ask his “Senator friends” to contact FCC Chairman Ajit Pai about the deal.Delrahim has been a harsh critic of approving mergers with conditions that impose rules on how companies conduct business. Yet he approved the Sprint deal with just those kind of conditions, the states said in their filing.“DOJ’s antitrust chief previously stated that he does not ‘think [he’s] smart enough’ to design remedies ‘that distort competitive incentives just enough to undo the damage done by a merger, for years to come,’” the states said. “It is unclear what has changed.”Wall Street is increasingly skeptical of the companies’ chances of prevailing. The spread between T-Mobile’s offer price for Sprint and the trading price, an indication of the deal’s risk, swelled to an all-time high Thursday of $3.17 at 2:27 p.m. in New York. Cowen & Co. analyst Paul Gallant sees a 60% chance the judge will rule in favor of the states.Read More: U.S. Sides With T-Mobile in Fight Against States Over SprintIn separate filings Wednesday night, the states and T-Mobile outlined their evidence.The states say the deal would give T-Mobile the power to raise prices by eliminating competition between the two companies and leaving just three major carriers -- AT&T Inc., Verizon Communications Inc. and T-Mobile. The enlarged company would have a national market share of 34% by revenue, making the deal “presumptively illegal” under antitrust law, they said. And Dish -- a satellite-TV provider with no experience in the wireless market -- won’t be a real competitor, they said.T-Mobile and Sprint countered that the tie-up would actually lead to more competition. By combining the two networks, T-Mobile will have more capacity and lower costs, which in turn will lead to lower prices for consumers. Without the deal, Sprint won’t be unable to upgrade its network infrastructure to remain competitive, they said.“There is no realistic way, aside from the merger, to break the ‘vicious cycle’ of poor network quality leading to subscriber losses and reduced network investment, leading to even worse network quality,” the carrier said. “Sprint is increasing prices, and without the merger it will continue to do so and will retreat from nationwide service.”The case is New York v. Deutsche Telekom, 19-cv-5434, U.S. District Court, Southern District of New York (Manhattan).(Updates with court filings starting in eighth paragraph)To contact the reporters on this story: Erik Larson in New York at elarson4@bloomberg.net;David McLaughlin in Washington at dmclaughlin9@bloomberg.netTo contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Peter Jeffrey, Anthony LinFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Thu, 09 Jan 2020
16:57:36 +0000
TECHnalysis Research President and Chief Analyst Bob O'Donnell talks tech at CES 2020
TECHnalysis Research President and Chief Analyst Bob O'Donnell joins On The Move to discuss the Consumer Electronics Show and the latest tech innovations going into 2020.
Thu, 09 Jan 2020
13:48:01 +0000
Sprint Collaborates With Telstra for Advanced IoT Solutions
Sprint (S) teams up with Telstra to deploy virtualized IoT platform, Curiosity, in a bid to fortify connectivity management with enhanced resiliency, performance and security across Australia.
Wed, 08 Jan 2020
18:16:58 +0000
Apple could be close to a $2 trillion company in 2020: top strategist
Apple's stock still looks ripe for a lot more upside. This Apple insider explains why.
Wed, 08 Jan 2020
14:11:02 +0000
T-Mobile Records 7 Million Net Customer Additions in 2019
The healthy customer growth is likely to boost investor confidence as T-Mobile (TMUS) braces for merger with Sprint in the near future.
Wed, 08 Jan 2020
14:00:00 +0000
Sprint Business Applauded by Frost & Sullivan for Engaging Customers with its Smart Messaging Business Communication Solution
Based on its recent analysis of the North American business communications solutions market, Frost & Sullivan recognizes Sprint Business with the 2019 North American New Product Innovation Award for Sprint® Smart Messaging -- a solution to help businesses communicate with their customers through an artificial intelligence (AI)-powered text messaging system. Sprint's innovative solution allows businesses to use their existing phone number to communicate in real-time using AI, and as a result rescue missed customer calls. Smart Messaging allows businesses to uniquely interact with customers using non-traditional forms of communications. It delivers enterprise-grade assistance for storefronts, restaurants, and businesses of all sizes. With the unique text capabilities of Smart Messaging, businesses are realizing the benefits of an 'always-on' automated assistant that enhances customer satisfaction and employee productivity.
Wed, 08 Jan 2020
13:55:00 +0000
Sprint Announces International Expansion Of Curiosity™ IoT
Sprint (NYSE:S) today announced that its ground-breaking Curiosity™ IoT platform will soon be available for customers in Australia thanks to a new relationship with Australia's largest mobile network operator, Telstra. The announcement is the first in a series of efforts by the company to enable international IoT solutions. Going beyond roaming, the relationship with Telstra will allow for local breakout in Australia, helping to improve roundtrip time and enabling better performance of customer's IoT applications. Curiosity™ IoT service is expected to be available in Australia in the first half of 2020.
Wed, 08 Jan 2020
13:10:01 +0000
Sprint (S) Adds Wirecard Commerce Solutions to IoT Platform
The collaboration between Sprint (S) and Wirecard initially focuses on the retail segment, with plans to expand to other industries and services.
Wed, 08 Jan 2020
11:45:00 +0000
Why AT&T Could Be The Big Winner at This Year’s CES
AT&T and the other carriers are here and there are a variety of 5G phones on the convention center floor. AT&T won’t be the only winner, of courser. China is arguably ahead of the U.S. in rolling out service and spurring consumer interest in buying 5G phones. But in the U.S. market, AT&T is better positioned than (VZ) (VZ), which is scrambling to find more spectrum.



"ValueForum is an active, private, online discussion community for stock & bond market investing. In discussion forums divided into finely grained topics, you will find sophisticated investors trading tips, research, and due diligence on value stocks, income investments, forex, market news, and more. Join in - trade ideas, strategies, current news, via our unique message bulletin boards, stock ratings system, and other online tools specifically geared toward our community."

Random member testimonial: "There is power in numbers. It's obvious that most brokers don't have a clue of what they recommend to clients. Rarely do they own what they are talking about. Here at VF it's real. Real people with real positions giving their takes on the good w/ the bad. "Knowledge always beats strength" is a great quote. Here, at VF, I hope to see the sharing of knowledge become our strength." more testimonials »

Email / About | Privacy | Terms of Use | How To / FAQ | Msg Ticker | VF Home | My.vf | BDCs.vf | Energy.vf | REITs.vf | TA.vf
 
Nothing in ValueForum.com is intended to be investment advice, nor does it represent the opinion of, counsel
from, or recommendations by ValueForum.com. ©2003 - 2020, Powered in part by Ticker TechnologiesContact Us

Stock Market Investing Forum - Trading Tips & Research - Online Message Boards