I just bought Sprint at $10.81. They have been beaten up lately. However, they recently announced they are likely to work with ClearWire to launch Sprint's 4G network using WiMAX.
The previous Sprint CEO could not make the deal happen, so they walked away from ClearWire in 2007. I am speculating that the new leadership will work better with ClearWire, because Sprint cannot roll out 4G by themselves. They are now reportedly are mulling the formation of a joint venture that would build the WiMAX network, which would receive outside funding from investors such as Intel, Google and Best Buy.
As a second, more extreme speculation, I am speculating that Google may buyout Sprint as Google's assertive step into wireless. That will surely drive S price higher, at which point I may sell.
I know I missed 5 days of opportunity (was $8.35 on Jan 23), but this is a long term investment for me. I do not have a complete exit strategy, so maybe you guys have ideas on how I can quantify when to sell. What do you think?
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2 comments:
Nice move Bryan. Sprint has really been hurting recently (Stock is down over 50% since its June highs of $23). However you hit the nail on the head - that was under old leadership. The new leadership and partnership with Clearwire could be the turning point.
Looking at a 3 month chart of S, the stock crossed its 9day moving average yesterday on strong volume. The stock is starting to gain momentum and I would like to see it cross the 27 day moving average before making a move. Of course this is not the question you are asking since you already bought the stock.
I see very little downside potential in this stock, it could retest the lows set last week in the 8.70 range but probably has more upside potential. My theory would be if it breaks below 8.50 I would sell. On the upside I could see the stock swing to the 12.75 - 13.77 range. At that point I would unwind a third of my position.
Thanks for the technical analysis and insight.
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