Sprint (NYSE:FON) is a global communications company - at the
forefront of integrating long-distance, local and wireless
communications services, and a large carrier of Internet traffic.
Sprint built and operates the United States' first nationwide
all digital, fiber optic network and is a leader in advanced
data communications services. With annual revenues of more than
$23 billion and serving more than 20 million businesses and
residential customers, Sprint has more than 81,000 employees
nationwide. Founded in 1899, the company maintains its world
headquarters in Kansas City.
Sprint is comprised of the FON Group and the PCS group,
representing the company's wireline and wireless businesses.
The FON group represents Sprint's core wireline telecommunication
operations, which include long distance, local telephone and
product distribution, and directory publishing businesses. It
also includes activities related to the development of Sprint
Integrated On-Demand Network, and certain other ventures. The
Sprint PCS Group consists of Sprint's wireless personal
communications services operations.
Reasons To Invest
The beaten down and beleaguered telecom sector may be an
interesting place to begin snooping around for long-term
investment ideas. As a whole, the telecom group has been
beaten down over the past several years due to increased
competition and subsequent decreased pricing power in long
distance service. In addition, the major telecom providers
had been on a huge spending spree for the last several years
in an attempt to stay ahead of the curve by purchasing
leading edge telecom equipment to build next-generation
voice, video and data networks.
However, it appears that prices are stabilizing in the long
distance business and prices of telecom equipment have
drastically fallen in the last six months due to a massive
For its part, Sprint will obviously benefit from the two
aforementioned events. Indeed, these two factors could act
as a catalyst in the near-term to drive shares higher. But
since our focus is on the long-term, we'll digress.
Sprint is aggressively pursuing the wireless enterprise
network idea, which aims to increase productivity and decrease
costs among corporate IT departments. It's a rather large
market, and has little competition from the smaller regional
concerns. Sprint's entrance into this new marketplace could
have a very positive impact on its shares over the long-term.
Although Sprint's earnings have languished for some time due
to the telecom-related issues, they may soon begin to
accelerate to the upside as the fundamentals in the telecom
sector begin to improve.
Shares to Qualify = 1 Accept Foreign Accounts: No
Auto-reinvestment = No Temper Enrollment Serv: Yes
Min/Max Investment = $25 to $5,000/quarter
Dividend: 0 Cash: 0 Auto ReInvest: N/A
UMB Bank, N.A.
Sprint Investor Information Line
Industry Group: Telecom 52-week high=$67.00
Annual Dividend Per Share=$0.50 52-week low =$19.63
Last earnings 01/21 est=0.39 actual=0.41
Next earnings 04-17 est=0.37 versus=0.48
P/E = 16
Strong Buy = 2
Moderate Buy = 8
Hold = 4
Moderate Sell = 0
Strong Sell = 0