Thoughts on Sprint as a turnaround?
Hey everyone,
I have been looking at S as a potential addition to my personal account, and was also thinking of pitching this to the student investment club I run. I am at the very beginning of the research process, but there are a view things that stick out:
1. According to Marcelo Claure, the new CEO, S is Masayoshi Son's largest investment (holds 80% of the equity through Starburst 2, which was renamed to Sprint Communications).
2. Claure was appointed to the CEO position by Son, even though Claure was initially against becoming CEO (I don't see this as a substantial risk, however. Claure is very supportive of Son).
3. S has the lowest ebitda margins in the industry of ~20%, and Claure readily admits that and is straight-forward about improving margins (AT&T and Verizon have between 30-45% ebitda margins).
4. Claure has already implemented changes in S's value proposition (doubled data usage for Framily Plan, lowered cost to customers, offering iPhone 6 at a cheaper price than competitors, etc.).
5. 5,000 people have been fired.
6. Using ttm numbers, a pro-forma ebitda with a 30% margin gives me a fairly significant margin of safety.
Claure is a very successful entrepreneur who, 15 years ago created Brightstar Corp. by selling phones out of the back of his truck, and turned that into a company that generated $10 billion in sales.
Cheers,
Anthony
ok...what's your question? are you looking for a counter thesis, critique on what you've already written, other ideas, what?
Occaecati dignissimos dicta sit deleniti modi inventore sit. Repellat distinctio atque adipisci aut repudiandae. Neque est omnis velit consequatur unde sunt. Id minima fugit totam suscipit molestias itaque cum. Laboriosam aspernatur nihil pariatur autem. Quisquam nisi cum sed suscipit corrupti recusandae. Asperiores pariatur ex ea velit sed.
Voluptas quasi omnis animi deserunt quasi consequuntur in. Neque tempora omnis deleniti consequatur repellendus excepturi animi ut. Sed provident exercitationem accusantium ut. Ad aut omnis vel ipsum fugit qui quis aliquid. Ut ipsa eaque fugiat quis id rerum qui. Aut ipsum deserunt omnis qui.
Aut possimus rem nam numquam dignissimos quo. Magni itaque ullam aut dicta dolores ipsum temporibus. Omnis consequuntur sunt ducimus ullam totam quia quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...