May 20, 2013
Sprint Bulks Up on Mobile Advertising with Handmark Acquisition
 In a move that points to how widespread and impacted the competition for mobile advertising dollars has and will continue to become, on Monday the nation’s third largest provider of wireless services Sprint Nextel (S) announced the acquisition of the Kansas City, Missouri-based Handmark, Inc. Handmark’s subsidiary One Louder is a developer of mobile apps, and having done prior work for companies such as Twitter, with TweetCaste, Facebook (FB) with FriendCaster, and CBS sports among others, the company offers Sprint a much-needed foothold in an increasingly device-oriented marketplace. Sprint sees One Louder as being the perfect supplement to its Pinsight Media+ service that provides mobile marketing data and analysis to advertisers. Kansas City is known to have a thriving tech scene, and according to Sprint’s press release on Monday, the company has spent a significant amount of time fostering relationships (more)…
May 17, 2013
ViaSat Up 16 Percent on New Satellite, Strong Earnings
 Shares for wireless and satellite communications provider ViaSat (VSAT) jumped early on Friday, holding to an increase of nearly 16 percent and hitting an all-time high of $71.64, fueled by a strong earnings report released in late trading the previous day. The San Diego, California company on Thursday reported net profits for the first quarter of 2013 of $1.9 million, or $0.04 per share on revenue of $308.7 million, compared to the prior year period during which it lost $7.4 million, or $0.17 per share on revenue of $240.5 million. Analysts had expected earnings of $0.02 per share on revenue of $286 million. ViaSat cited strong sales growth across in satellites and commercial networks. Sales in the government systems division were also up, even in the face of drastic cuts to the federal budget that has affected other companies who (more)…
May 16, 2013
Stocks Under $10: Cincinnati Bell
 Cincinnati Bell (CBB) – ($3.59) has recently been upgraded to a Buy rating according to ValuEngine with fair value at 3.31, which makes the stock 8.3% overvalued. The one-year price target is $3.98. ValuEngine Profile – “Cincinnati Bell provides a wide range of telecommunications products and services to residential and business customers in Ohio, Kentucky and Indiana.” Analysis – The daily chart for CBB shows rising momentum with the stock below its 21-day and 50-day simple moving averages at $3.48 and $3.37 but below its 200-day simple moving average at $4.56. My semiannual value level is $2.59 with a weekly pivot at $3.63 and monthly risky level at $4.20. Courtesy of Thomson / Reuters Ticker Company Name Mkt Price Fair Value One-Year Price Target Last 12-Mon Retn (%) 5-Yr Avg Retn (%) P/E Ratio CBB CINCINNATI BELL 3.59 3.31 3.98 (more)…
May 10, 2013
McCain Bill Proposes to Radically Alter Cable Television
 Veteran Senator and former presidential candidate John McCain (R-AZ) introduced legislation on Friday that, if enacted, would radically alter the way consumers pay for cable television services. The Television Consumer Freedom of Choice act of 2013 stipulates three main objectives, as McCain laid out in comments to the Senate: (1) encourage the wholesale and retail ‘unbundling’ of programming by distributors and programmers (2) establish consequences if broadcasters choose to ‘downgrade’ their over-the-air service (3) eliminate the sports blackout rule for events held in publicly-financed stadiums. McCain, who introduced similar legislation some 7 years ago to no effect, pointed to his long-standing support for allowing consumers an “a la carte” model of picking what channels they pay for, compared to the current practice of “bundling”, which forces viewers to pay a flat rate for different packages of channels. The Arizona Senator (more)…
Stocks Under $10: Cbeyond
 Cbeyond (CBEY) – ($9.23) has a Strong Buy rating according to ValuEngine with fair value at $10.63, which makes the stock 13.2% undervalued. The one-year price target is $10.67. ValuEngine Profile – “Cbeyond is an Atlanta-based managed services provider in the emerging local voice and broadband services market and manages voice over Internet Protocol, facilities-based, private, local phone network. Cbeyond delivers an integrated package of high quality local and long distance telephony services, high-speed Internet access and Internet-based applications, including voicemail, email, Web hosting, data backup, file-sharing, VPN and more to a target market of small business customers in selected large metropolitan areas.” Analysis – The daily chart for CBEY shows overbought momentum with the stock above its 21-day, 50-day and 200-day simple moving averages at $8.45, $7.76 and $8.18. My semiannual value level is $8.62 with a weekly pivot (more)…
May 8, 2013
Stocks Under $10: Why Sprint is a Strong Buy
 Sprint Nextel (S) – ($7.15) has been upgraded to a Strong Buy rating according to ValuEngine with fair value at $7.61, which makes the stock 6.0% undervalued. The one-year price target is $8.18. ValuEngine Profile – “Sprint Nextel offers a comprehensive range of wireless and wireline communications services to consumer, business and government customers. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering industry leading mobile data services; instant national and international push-to-talk capabilities; and an award-winning and global Tier 1 Internet backbone.” Analysis – The daily chart for Sprint shows declining momentum with the stock above its 21-day, 50-day and 200-day simple moving averages at $6.92, $6.36 and $5.60. My semiannual value level is $6.90 with a monthly pivot at $7.20 and weekly risky level at $7.28. Courtesy of Thomson (more)…
April 24, 2013
MetroPCS Shareholder Agree to T-Mobile Merger
 Shareholders of MetroPCS Communications (PCS) voted on Wednesday to approve a merger with the nation’s fourth largest provider of wireless services, Deutsche Telekom AG’s T-Mobile (DTEGY). The terms of the reverse merger will give PCS shareholders $4.06 per share in cash as well as 26 percent of the combined company’s stock, with Deutsche Telekom taking ownership over the rest of the shares for at least 18 months. According to Deutsche Telekom, the deal will close by the end of the month. The new company will be called T-Mobile USA, and will be traded on the New York Stock Exchange under the ticker TMUS. For T-Mobile, the move is seen as a means of increasing its ability to compete with the three largest wireless service providers in the U.S., Verizon Wireless (VZ), AT&T (T), and Sprint Nextel (S). The company hopes (more)…
AT&T Misses on Revenue from Cheaper Tablet Data Fees
 AT&T (T) reported net income for the first quarter of $3.7 billion, or $0.67 per share on revenue of $31.36 billion. Adjusted earnings, excluding the sale of an advertising business, were at $0.64 per share, above the $0.60 earned in the prior-year period, and exactly what analysts had predicted. Revenue, however, was nearly half a billion less than analyst expectations of $31.74 billion, and less than the prior year period when the company brought it $31.82 billion. The company added 296,000 devices to contract-based plans, but all in the form of tablets carrying lower monthly fees. Overall, the AT&T posted its first ever loss on contract-based plans, and, excluding tablets, lost contract-based devices to the tune of 69,000. This created a situation in which average revenue per contract user rose only 0.9 percent for Q1. Company CFO John Stephens recognized (more)…
April 22, 2013
Stocks Under $10: Wireless Providers in the Utilities Sector
 At www.ValuEngine.com we show that the Utilities sector is 9.6% overvalued. All six stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots. ALSK – has been below $10 since the week of May 7, 2011. CBEY – was a $46 stock in December 2007 and has been below $10 since the week of October 13, 2012. FTR – has been below $10 since the week of October 18, 2008. GNCMA – has been below $10 since the week of October 20, 2012. OTT – has been below $10 since the week of April 28, 2012. WIN– has been below $10 since the week of October 27, 2012. Reading the Table OV/UN Valued – The stocks with a red number are undervalued by this percentage. Those with a (more)…
April 15, 2013
Sprint Nextel Spikes on Dish Buyout Offer
Dish Network (DISH), the U.S.’s second largest satellite television provider, announced on Monday a $25.5 billion cash and stock buyout offer for Sprint Nextel (S). The bid from Dish was an unexpected move, as it eclipses a previous deal that had been in the works between Sprint and the Japanese telecommunications company SoftBank Corp. (SFTBY). Late last year, Sprint and SoftBank had agreed to a $20.1 billion deal that would have given 70 percent of the nation’s third largest mobile network to the Japanese company. The deal is still being reviewed by regulators. For Dish, the move comes in the context of Chairman Charlie Ergen’s efforts to control a larger portion of the wireless spectrum. Sprint and Dish are currently competing to purchase smaller wireless company Cleawire (CLWR), for which Dish is, for the time being, holding to its $3.30 (more)…
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