My stock pick for 2011.
I like sprint, a lot.
Apple is gonna save their asses
For the first time in years they have added new subscribers, and they are the only player that offers unlimited data at such a cheap price.
I bought the 2013 JAN 2.50 strike.
Why not just own it outright?
You can get more for your money with the 2.50 LEAPS, they go for around .80 cents, but you can put in an order limit for .60 cents and hope for a fill.
How high could this stock could go?
S&P has a 5 dollar price target for the next 12 months- I believe it could go higher. Sprint got the 4s exactly when jobs died, and if the iPhone was going to sell before his death, you know that after he passed, people have put this product on their short must have list that for xmas.
You can hear the cash registers working overtime once S got the iPhone, think of all those new contracts.
“The launch of this iconic device resulted in Sprint’s best ever day of sales in retail, web and telesales for a device family in Sprint history. The response to this device by current and new customers has surpassed initial expectations. The iPhone is expected to be accretive for Sprint, and iPhone users are expected to be among Sprint’s most profitable customers.”
The money is rolling in!
The problem with S; before the iPhone there was zero subscriber growth, and too much debt. They still have a lot of debt, but- soon, they are going to have a lot of cash to pay it down.
Another caveat, if the iPhone 5 is garbage, If no one buys the iPhone 5, sprint goes bankrupt.
I also like Sprint as a cheap and indirect way to gain some exposure to Apple stock.
Since Sprint had to commit 20billion on Apple- the two company’s fates are intertwined for the time being.
Give Apple credit, they were like- you want the iPhone- that will be 20B please. Damn!
If S sells all of those phones the incurred debt will be paid back.
Once Sprint finally got the iPhone, customers began to voluntarily switch from At&t and Verizion- the Sprint unlimited data plan is a steal.
If they can take market share from At&t and Verizon, S can become a big player and a real rival.
They bet it all on the iPhone, to put this in the proper perspective, the 20billion they committed to this deal is worth almost triple Sprint’s current market cap.