Sprint Nextel shares got a downgrade today from Thomas Weisel Partners on speculation that a buyout bid from German mobile giant Deutsche Telekom is unlikely.
Analyst James Breen cut his rating on the shares to Market Weight from Overweight with a price target of $4.50 a share, according to a note he published Tuesday. Shares of Sprint aren’t seeing much reaction, as they’re trading about 0.7 percent lower at the midday point.
In his note, Breen says the probability of a deal between Deutsche Telekom and Sprint remains low. Here’s some more from the note:
"We believe that current price levels do not fully reflect recent changes in the Sprint business and the wireless landscape, including the launch of the Any Mobile plan, Palm Pre discounts and modifications to executive compensation, all of which we feel reflect challenging fundamentals in the hyper-competitive U.S. wireless market. With the company having almost realized the full potential of its cost-cutting measures, we expect S shares will perform in line with its peer group and are lowering our price target to $4.50."
Some fatcats in Overland Park leak a LIE that Deutsch TC was planning to takeover -
to give the stock a temporary kick up to $4.50
... so they can try to dump any of their company-issue shares that aren't already under water.
You'll get your takeover / outsource & liquidation at somewhere under $3.00 clowns,
and it won't be long.
"Down goes Frazier ... DOWN goes Frazier ...
"