Thursday, March 24, 2011

Sprint in the Catbird Seat

(repost of bigger post below)

I exited $S @ 4.96 on the rise for a +
Of course, I had seen it go to 5.15 in
dismay... waiting to re-enter at a lower #
Now Im very happy and still waiting to re-enter

update: I am now in the process of multi purchases
of $S 1/19/2013 3.00 Call options ( have 40 on my way to 150)

ATT has offered T-Mobile $1150 per perscriber
That makes $S undervalued by $10+ conservatively 

Sprint has 50 million subscribers add to it 1/2 interest in Clearwire subtract from it Value of customer plans vs T and VZ and lets call it even - 50 million Customers X $1150 per perscriber = and rounded $60 Billion in total value (let's say)Shares outstanding 3 billion Value $20.00 lets discount for challengers of the numbers and say $15.00  now selling at less than $5   WTF! the value is 3X the going price!!!

So... now a challengers (distractors) 
with a smile on his/her face and asks "What's the Burn Rate?"
forget about profit and loss - last net annual Cash Flow + $5Billion that's plus five billion dollars - So where is value deterioration in the future.  

ps. if you are a dog owner and/or a dog lover Don't miss renting the English Movie
"Dean Spanley".... This is my gift to you... 

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