Sprint Looking More Vulnerable. Where Is Carl ?
With the horrid
results Sprint reported today, plummeting its share price to $8.7 from a
high 6 months ago of $22.9, the stock
has now fallen some 60% (whereas the NASDAQ is down about 13% over the same
period)So, I’m wondering when someone like Mr. Icahn might put them into play.
(the stock is down 41.6% over the last 5 years, where the NASDAQ is up 31.5% over the same period)
I’m not talking about the buy-and-chop-up kind of takeover, but rather the buy and turn-around kind. As in consolidate operations, unify the branding, get the product offering back on track, and fix customer service.
I mean, I think 3 years is enough time to change the signs above the stores, and to unify the web site!
In a way, solid branding is the hallmark of a heavily ad-driven consumer product like wireless services and phones.
Sprint's latest stab at initiating change was a trial balloon about consolidating operations in Kansas as opposed to the dynamic telecom hub of the east coast in northern Virginia. Uh, OK. I guess access to and attracting top talent might not be part of Sprint’s priorities.
To be fair, new CEO Dan Hesse has only been on the job a month and needs time. But how long will it be before a takeover group takes it’s case to the shareholders and proposes fast, decisive action?
And if one of the cable guys came in, it would send a shock wave though the industry
Either way, the market needs more competition to spur innovation, and Sprint’s eventual leveraging of their assets and development of an irresistible offering will be good news for wireless consumers.
Even Verizon is only up 1.5%, but at least it's up! (although their non-wireless business is different than that of Sprint)
Interesting implications!
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The pre-merger Sprint was in Kansas City, and they still have more personnel there than any other site.
It's a cost issue.
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Exactly the reason why they should get out of KC. They need to shed the dead wood!
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