Last updated on April 24, 2014 at 13:35 EDT

Today’s Technical View on Cincinnati Bell and Sprint Nextel: Telecom Companies Face Tough Times

February 15, 2013

LONDON, February 15, 2013 /PRNewswire/ –

Telecom industry is one of the most dynamic sectors around. These companies need to
constantly upgrade their offerings and infrastructure to attract and retain their
customers. Sprint Nextel Corp. (NYSE: S) is looking forward to a year full of activities.
It is expected to finalize its SoftBank Corp. and Clearwire Corporation deals in 2013. The
company is also expanding its 4G infrastructure. Cincinnati Bell Inc. (NYSE: CBB),on the
other hand,is divesting its non-core assets in the form of an IPO. The stock is expected
to perform well as it is being lapped up by Hedge Funds. StockCall initiated free in-depth
technical analysis on Cincinnati Bell and Sprint Nextel which are currently available upon
sign up at


Cincinnati Bell Inc. Gets New CEO

Cincinnati Bell Inc. has a lot going on. The company recently appointed a new CEO as
it selected Ted Torbeck for the position. Torbeck has considerable turnaround expertise
and will help the company to focus on its core areas. Cincinnati Bell Inc. took a major
step when it spun off its data center Cyrusone Inc. After the IPO of Cyrusone Inc., the
company still retains more than 70 percent interest in this data storage REIT. Cyrusone
Inc. has 23 data centers. Sign up for the free technical analysis on Cincinnati Bell Inc.


Cincinnati Bell Inc. is an attractive option for Hedge Funds as evidenced by the large
chunk of its stock being held by Black Rock Investments. While the stock appreciated 16
percent in the past 52 weeks, its YTD performance has been dismal. The stock lost 15
percent of its value so far this year. However, post-divestment it is likely to see some
upward action.

Sprint Nextel Corp. to Finalize Softbank Corp. Deal

Sprint Nextel Corp. announced its quarterly results and reported quarterly losses at
44 cents per share, marginally higher than the 43 cents per share in net loss it incurred
for the corresponding quarter of last year. However, it still performed
better-than-expected as consensus estimates for the loss stood at 46 cents per share.
Sprint Nextel Corp. also reported 3.2 percent increase in its revenue to $9 billion, again
beating consensus estimate of $8.9 billion in revenue. Download the free report on Sprint
Nextel Corp. by registering at


Sprint Nextel Corp. is going for a major overhaul as it will sell 70 percent of itself
to SoftBank Corp. The deal is likely to be finalized this year and is worth $20 billion.
Through this deal, Sprint Nextel Corp. will buy a stake in Clearwire Corporation, which
recently reported its fourth quarter results and missed consensus estimates for both the
top-line and bottom-line.

While the entire telecom sector is struggling with intense competition and the
resulting price wars, Sprint Nextel Corp. still stood out with its weak results. The
company failed to maintain its Average Revenue per User. However, its merger with SoftBank
Corp. is expected to make things a little easier for Sprint Nextel. The company is looking
to compete with AT&T and is going ahead with its 4G deployment. It is expected to yield
the benefits of massive capital outlay for these infrastructural upgrades. The domestic
teleco is moving in a positive direction as Omega Advisors upped their stake in Sprint
Nextel Corp. by 30 percent in the fourth quarter. Further, there had been a number of
insider purchases over the past couple of months. These transactions show management’s
confidence in the future direction of the company.

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Source: PR Newswire