Summary
Sprint's recent quarterly report said that the "Silver Lining" in their loss of market share is the rate is decreasing. Investors will buy into companies loosing money if they show growth. Funding a stock sale with the latest numbers would have greatly depressed the stock price. None of this is good for Sprint.
Analysis
My daughter has had horrible problems with Sprint customer service and billing and will now take the hit and move to Verizon. Sprint's poor reputation for customer service is well know and certainly it has impacted us personally.
Sprint's major problem is continued market share decline. Compared to AT&T with the iPhone and Verizon with it's very broad and good service there is little reason to remain with Sprint and the numbers tell the story.
The convertible bond sale after the current quarterly report probably met with very low prices when their underwriter took it for a road show. Management withdrew the offering lest it tank stock prices. The dilution to the current shareholders would have been substantial.
Sprint intends to pay down a $1B of their $24B debt. really a drop in the bucket. Without a turn around in revenue or a sale of Nextel getting more capital from the equity markets will be very dilutionary.
