Sprint's Earnings report today only confirms how drastically it is underperforming Verizon and AT&T. However, I covered my S short positions today because I think the company has become a decent takeover target, if for nothing else but their customers. VZ and T can sit and wait for customers to leave S for them, but then customers will mostly split between the 2 and other competitors, or they can go buy S, if for nothing else than their customers. Do I think this will happen? Not necessarily, but it's too big of a risk to have a short position on in my opinion. Should S bounce back into the 9's anytime soon, I would look to buy puts to limit my downside should it get bought out.
The int'l cell service story is a great one, with many great players that are operating extremely well. VIP and MBT are dominating Russia and eastern Europe. MBT is a more established, slower growing company with a nice dividend yield over 3%. VIP is fast growing and expanding into countries (some that have MBT and others that don't). MICC has the broadest exposure with operations in C America, S America, Africa and Asia. It is one of the fastest growing, and focuses on the people who can barely afford cell phones. It does the majority of its business on prepaid cards, and bills by the second instead of the minute.
Bottom line: the wireless provider sector is one to watch, both international and domestic going forward. I think it's a total Bull industry.
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With China and India both already having more mobile phone users than the US, and the market growing exponentially as more and more of those people get signed-up and plugged-in, there is no doubt that there is room for ridiculous growth.
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