SPRINT = a "meltdown," a "miserable performance" and a "di..

Sprint shares plummet after job cuts

from BusinessWeek


NEW YORK

Shares of beleaguered Sprint Nextel Corp. took a nosedive Friday after
the nation's third-largest wireless carrier said it continued to lose
subscribers at an alarming rate during the fourth quarter and will lay
off thousands to cut costs.

A "meltdown," a "miserable performance" and "disaster" were some of
the words analysts used to describe Sprint's predicament Friday. The
company said it lost 683,000 postpaid subscribers during the quarter.
Wall Street had expected a loss of about 250,000 to subscribers,
according to Goldman Sachs analyst Jason Armstrong.

Sprint also announced plans to cut 4,000 jobs, close 8 percent of its
retail locations and reduce its use of contractors and outsourced
services. While investors have been expecting the company to outline a
cost-cutting plan since its new CEO took helm, Armstrong said in a
client note the cuts were already in the works under interim
management.

"Hence, we would warn that new CEO Dan Hesse has yet to take his cut
at the business," he wrote. "He has historically been aggressive on
cost cuts and conservative on guidance, so look for more reductions
when he finalizes his plan."

Hessem, who took over as Sprint's CEO in December, is the former chief
executive of Sprint spinoff Embarq, where he cut more than 1,200 jobs.
He replaced Gary Forsee, who was ousted in October following several
quarters of falling subscriber numbers and other operational troubles
for the company.

Sprint did not mention its WiMax service, Xohm, when announcing the
job cuts, and Cowen and Co. analyst Thomas Watts said the company "may
continue with a slow launch in select markets as planned, but may
reevaluate its strategy going forward." Sprint, he added, may scale
back WiMax spending as it focuses on improving its core wireless
business. The project has been viewed by some as too expensive and
years away from turning a profit.

Most analysts kept "Hold" ratings on Sprint's stock, noting that the
company is in the midst of a turnaround that may have to get worse
before it gets better. In the meantime, Sprint's subscriber defections
should benefit Verizon Wireless and AT&T Inc. -- though the shares of
both companies fell on Friday.

Sprint's shares plunged $2.91, or 25.2 percent, to $8.66 in afternoon
trading. The stock has lost nearly 35 percent of its value since the
start of the year. Earlier Friday, shares hit $8.15, their lowest
level since 2002.

Verizon's shares fell $1.91, or 4.7 percent, to $39. AT&T's shares
fell $1.29, or 3.5 percent, to $36.01.

On Jan 18, 6:38 pm, 4phun <vic.hea... DeleteThis @gmail.com> wrote:
> Sprint shares plummet after job cuts
>
> from BusinessWeek
>
> NEW YORK
>
> Shares of beleaguered Sprint Nextel Corp. took a nosedive Friday after
> the nation's third-largest wireless carrier said it continued to lose
> subscribers at an alarming rate during the fourth quarter and will lay
> off thousands to cut costs.
>
> A "meltdown," a "miserable performance" and "disaster" were some of
> the words analysts used to describe Sprint's predicament Friday. The
> company said it lost 683,000 postpaid subscribers during the quarter.
> Wall Street had expected a loss of about 250,000 to subscribers,
> according to Goldman Sachs analyst Jason Armstrong.
>
> Sprint also announced plans to cut 4,000 jobs, close 8 percent of its
> retail locations and reduce its use of contractors and outsourced
> services. While investors have been expecting the company to outline a
> cost-cutting plan since its new CEO took helm, Armstrong said in a
> client note the cuts were already in the works under interim
> management.
>
> "Hence, we would warn that new CEO Dan Hesse has yet to take his cut
> at the business," he wrote. "He has historically been aggressive on
> cost cuts and conservative on guidance, so look for more reductions
> when he finalizes his plan."
>
> Hessem, who took over as Sprint's CEO in December, is the former chief
> executive of Sprint spinoff Embarq, where he cut more than 1,200 jobs.
> He replaced Gary Forsee, who was ousted in October following several
> quarters of falling subscriber numbers and other operational troubles
> for the company.
>
> Sprint did not mention its WiMax service, Xohm, when announcing the
> job cuts, and Cowen and Co. analyst Thomas Watts said the company "may
> continue with a slow launch in select markets as planned, but may
> reevaluate its strategy going forward." Sprint, he added, may scale
> back WiMax spending as it focuses on improving its core wireless
> business. The project has been viewed by some as too expensive and
> years away from turning a profit.
>
> Most analysts kept "Hold" ratings on Sprint's stock, noting that the
> company is in the midst of a turnaround that may have to get worse
> before it gets better. In the meantime, Sprint's subscriber defections
> should benefit Verizon Wireless and AT&T Inc. -- though the shares of
> both companies fell on Friday.
>
> Sprint's shares plunged $2.91, or 25.2 percent, to $8.66 in afternoon
> trading. The stock has lost nearly 35 percent of its value since the
> start of the year. Earlier Friday, shares hit $8.15, their lowest
> level since 2002.
>
> Verizon's shares fell $1.91, or 4.7 percent, to $39. AT&T's shares
> fell $1.29, or 3.5 percent, to $36.01.

HA HA HA, shoulda went with GSM...those Lucifer radio cards should be
good for some gold and silver scrap value....JG