Rumor???

[Jodi]

Hi everyone!

I was over at phonescoop.com to check out some info on my phone...I came across this posting....thoughts?

************************
"SEU39 said:
Well I'm currently a Sprint PCS employee, and I do really believe that Sprint is one of the best overall cell phone companys in todays growing market. However me and two of my Buddy's, we are wanting to partner and go into the cell phone industry. So my question is who would be the best to invest is. My thinking is verizon because I have heard from a few people that verizon is going to Buy Sprint PCS and Alltel. I also know that verizon is partnered with Vodofone which is the largest cell phone companys in the world
So what would be our best decision, because I know that I think that Sprint is the best but if they are going to get bought out eventually then why not go with verizon?"

[rich6880]

Once a rumor, has made it to a forum or to any non-insider like you or me, the price of the stock already reflects the news. You could still win, if there is a take over, but when the news comes out that the rumor is false, you will lose.

[Jodi]

Originally Posted by rich6880 Once a rumor, has made it to a forum or to any non-insider like you or me, the price of the stock already reflects the news. You could still win, if there is a take over, but when the news comes out that the rumor is false, you will lose.

True...I guess I was wondering if such a merger/takeover is inevitable...Is VZW really going to monopolize the cellular market in the near future?

[larry]

No Verizon isn't going to be buying Sprint any time soon. I always laugh when I hear people say that.

[MSE Environmental]

Originally Posted by rich6880 Once a rumor, has made it to a forum or to any non-insider like you or me, the price of the stock already reflects the news. You could still win, if there is a take over, but when the news comes out that the rumor is false, you will lose.

The old stock market adage "Buy on rumor, sell on news" is certainly true here.

There have been other discussions about the DOJ looking into the Cingular/ATTWS merger. That one shouldn't have a lot of problems getting through the DOJ.

Now, if this rumor were to come true, the DOJ would look long and hard at it. This one would have some real anti-trust issues behind it and would get a long hard looksy by the DOJ.....

Another thing to keep in mind, Alltel has some very close ties with the Stephens Investment Bank in Little Rock. (Scott Ford, Alltel's CEO used to work for Stephens, Stephens owns in excess of 10,000,000 shares of Alltel. That is right, ten million, and this is actual ownership, not to menction the amount of shares their clients own is huge. Also, Stephen's CEO, Warren Stephens is on the Alltel board) Bottom line is that before Alltel sells, it must receive the blessings of Stephens and be at a strong premium to market value. Alltel is profitable, something few cell phone companies can say, so they aren't going to just sell to the first suitor that comes along.

Sprint PCS maybe, but I don't think it is likely that Alltel is going to be aquired anytime soon.

Just my $.02.....

Mike

[rich6880]

Based upon all my knowledge of investments, it is my opinion that rumors like this are started my the traders on the floor of the exchange, and others who have stock, they want to dump. I do not think that there will be any takeover, but if one does occur, it would probably be with Alltel. Verizon and Alltel already are in a partnership to roam on each other network.

Independent of the rumors, I do think that Verizon is a good long term investment.

[ComicalMoodyDan]

Ugh... I'm so sick of these Verizon and ALLTEL rumors. ALLTEL is one of the best run wireless company's and is the nation's largest regional carrier with over 8 million wireless customers. ALLTEL is currently in good shape and it's unlikely they will sell out to anybody. ALLTEL is more likely to buy smaller carriers out and become larger. They will not be bought out by Sprint PCS or Verizon Wireless.

[ComicalMoodyDan]

By the way by "invest" What do you actually mean? Are you thinking about opening up a reseller and deciding which service to sell or are you actually going to put some money into telecommunication stocks?

If you are talking about stocks I'd go with Verizon. Sprint's stock is pretty much worthless right now and the company is in a lot of debt. If you are talking about opening up a reseller and deciding which company to invest your money into to sell wireless service then that's a different thing. From what I understand it's hard to become a Verizon Wireless authorized agent as they have strict rules on agents. If you can become one though Verizon is a excellent choice as they are currently the number 1 carrier in the US and are growing quite well.

I wouldn't sell AT&T Wireless or Cingular right now as they are growing in small numbers and are going to be working on integrating networks for a while. Sprint isn't growing like it use to either. So personally if I was considering opening up a authorized agent store in California I would proabely look into T-Mobile and Verizon Wireless as they are the 2 fastest growing carriers in the US based on numbers of new subscribers.

[agentHibby]

Verizon will never buy Alltel, since that is the company they use to divest when they need to.
Sprint will never buy Alltel reason when Sprint divested Sprint Cellular they said they would never do Cellular again.
Only way Verizon could get Sprint PCS is if they bought Sprint. Even if they did many markets would have to be divested to Alltel.

[Fathead]

I think it would be pretty difficult to invest in VZW. Since it's privately owned.



And I wouldn't touch Verizon Communications stock with a 100 foot pole.

[coalminer]

I could see Alltel buying Sprint, they do have some deep pockets, and that merger would probably get ok'd by the DOJ.

[ComicalMoodyDan]

Personally I wouldn't invest in any telecommunications stock. Too many companies are losing money and it's a highly competitive market. While it's unlikely it is possible that ALLTEL could try to buy Sprint PCS but I don't see that happening.

[roamer1]

Originally Posted by TNDan21 Personally I wouldn't invest in any telecommunications stock. Too many companies are losing money and it's a highly competitive market. While it's unlikely it is possible that ALLTEL could try to buy Sprint PCS but I don't see that happening.

I don't see ALLTEL buying anyone other than some of the remaining smaller regional/local carriers, and definitely not Sprint or any part thereof. VZW buying ALLTEL is unlikely as there's way too much 850 overlap that would likely have to be divested (while there's no spectrum cap, regulators are still likely to frown on one company owning both 850 licenses in a given market); VZW buying USCC makes somewhat more sense, but TDS (which owns most of USCC and is somewhat of a family concern) is unlikely to let go of its cash cow.

Personally, the only company I can see possibly buying Sprint is BellSouth -- they could let go of their 40% of Cingular (leaving SBC with 100% ownership of Cingular) and get not only SPCS (and thus CDMA, which BellSouth has favored in its various Latin American holdings), but also Sprint's landline business to fill in gaps in FL, NC, and northeast TN.

-SC

[ComicalMoodyDan]

Originally Posted by roamer1 I don't see ALLTEL buying anyone other than some of the remaining smaller regional/local carriers, and definitely not Sprint or any part thereof. VZW buying ALLTEL is unlikely as there's way too much 850 overlap that would likely have to be divested (while there's no spectrum cap, regulators are still likely to frown on one company owning both 850 licenses in a given market); VZW buying USCC makes somewhat more sense, but TDS (which owns most of USCC and is somewhat of a family concern) is unlikely to let go of its cash cow. Personally, the only company I can see possibly buying Sprint is BellSouth -- they could let go of their 40% of Cingular (leaving SBC with 100% ownership of Cingular) and get not only SPCS (and thus CDMA, which BellSouth has favored in its various Latin American holdings), but also Sprint's landline business to fill in gaps in FL, NC, and northeast TN. -SC

I agree with you on that first statement. ALLTEL will not be buying out Sprint PCS. They are likely to continue buying out smaller carriers to expand there customer base and footprint. ALLTEL and USCC make a good fit but I don't see US Cellular selling out. They seem to be content with the way things are now.

I don't see BellSouth trying to buy Sprint though and divesting there 40% stake in Cingular back to SBC. Sprint is in a lot of debt and after Cingular picks up AT&T Wireless they will be the number 1 carrier in the US as far as subscriber numbers are concerned. I don't think BellSouth is willing to take such a risk with Sprint when everything seems to be working out fine with Cingular.

[bobolito]

If at any time SBC and Bellsouth decide to split, I wish Bellsouth keeps Cingular. I know this is unlikely, but one can only dream. SBC and Verizon are made from the same greedy material evil.