Tomahawk, WI 8/08/2013 (Basicsmedia) – Sprint Nextel Corporation (NYSE:S) has been celebrating more than other companies which are labeled as its competitors. Why is this the case? This article seeks to find out what has brought joy to S at the expense of other companies, which provide similar services and products. Is there something which Sprint Corporation is doing better than its competitors in the market thus giving it the ability to perform much better?
How Did the SEC Case Affect Sprint Corporation?
There are certain things which can only be conclusively and comprehensively looked at the moment everything comes to an end. S had to endure a period when its reputation and performance was at stake as long as the SEC case went on. Strangely enough, the moment SEC decided to bring the case to an end, Sprint Corporation’s shares saw a major increase in their prices. It seems that the investors decided to show their utmost faith in this company by continuing to trade its shares, thus causing the rise in its price.
There was always a possibility that the company would suffer if SEC was to continue with its investigation. It had been reported that the company had collected local and state taxes in a way which was considered illegal. It is difficult to tell with a degree of certainty, but it’s safe to say that the continued investigation would have led to losses on the part of Sprint Corporation, and this wouldn’t have augured well for the company. This sort of uncertainty is something which the company would have suffered a great deal of harm from thus affecting investor confidence.
When it is compared to some of its competitors such as Time Warner Cable and IBM, Sprint Corporation is the only one which saw an increase in its share prices. The other two were only able to report a fall in their prices, and this is a good sign especially at such a time. When one company reports positive movement in its shares, while others are complaining of a drop, this can be taken to mean that it enjoys investor confidence and is doing something which the others aren’t able to as yet.
Other Factors Which Have Led to Improved
It was also reported that Sprint Corporation had enjoyed yet another piece of good news. This is when one of its major holders, Softbank Company of Japan, decided to increase its stake in S. Softbank increased this by a margin of 0.79%, thereby bringing its entire shares in S to an impressive 79.07%. This could also have led to the improved performance by the company’s shares, since Softbank Co had to purchase them from other minor shareholders. Softbank opted to carry out the purchases of these shares through Galaxy Investment Holdings, its subsidiary.
Is Sprint Corporation’s Share Increase Long Term?
Well, one can only say with certainty that the increase in Sprint’s share prices would be long term or not. However, after examining the causes of the increase, it is safe to say that this was brought about by factors which may not have a long term effect. The fact that Softbank Co was buying shares from some S investors is something which would be difficult to replicate. It was probably a one-off, unless it decides to carry out a similar process at some point in future. DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.