Investopedia: AT&T Makes One Small Step For Leap

Maybe AT&T (NYSE:T) was insurmountably frustrated in its rumored attempt to buy all or part of Telefonica (NYSE:TEF), or maybe there never was any substance to that rumor. In any case, in lieu of the $150 billion or so that Telefonica would have cost, AT&T's surprising announcement Friday night that it was acquiring Leap Wireless (Nasdaq:LEAP) for $4 billion seems like a much smaller step.

This is a curious deal on multiple fronts. Leap is not a particularly strong company, and it is not as thought AT&T is badly hurting for spectrum. Instead, this may be a case of AT&T flexing its financial muscles to make life harder on its competition (especially T-Mobile (Nasdaq:TMUS) and Sprint (NYSE:S)) and deny this asset to other potential bidders.

Read the full article here:
http://www.investopedia.com/stock-analysis/071513/att-makes-one-small-step-leap-t-leap-s-tmus-dish.aspx

Investopedia: The SoftBank-Sprint-Clearwire-Dish Network Game Of Musical Chairs Seems Over

In a process that has taken eight months now, it looks like SoftBank is going to succeed in its attempt to acquire Sprint (NYSE:S), and that Sprint is going to succeed in its attempt to acquire the remainder of Clearwire (Nasdaq: CLWR). The fly in both ointments, Dish Networks (Nasdaq:DISH) has apparently abandoned its efforts to acquire Sprint, and likewise appears to be unwilling to try to once again top Sprint's bid for Clearwire.

This all probably brings this particular chapter to a close, but those who think the story in U.S. wireless, broadband, and telecom M&A is over don't know the nature of the parties involved.

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http://www.investopedia.com/stock-analysis/062113/softbanksprintclearwiredish-network-game-musical-chairs-seems-over-s-clwr-dish-dtv.aspx

Investopedia: DISH Network Makes Another Bid For Mobile

It's hard not to give some credit to DISH Network’s (Nasdaq:DISH) leadership for realizing that they've taken the satellite TV concept about as far as they can. Instead, the company has been acknowledging (for some time now) that the company needed a pretty significant strategic transformation- one that would allow the company to leverage its wireless spectrum and compete more directly in the growing mobile broadband market.

To that end, Monday's bid for Sprint Nextel (NYSE:S) is bold, but not entirely surprising. In fact, I suggested a few months ago that DISH's bid for Clearwire (Nasdaq:CLWR) could be as much about forcing Sprint to the table as any particular desire to own Clearwire. Now the question is whether or not Sprint's board welcomes the overture, and whether Sprint's other bidder, Japan's Softbank, decides to up the ante.

Please continue reading here:
http://www.investopedia.com/stock-analysis/041613/dish-network-makes-another-bid-mobile-dish-s-clwr-vz-vod-t-dtv.aspx

Investopedia: Dish Network May Not Be Cheap, But It'll Be Interesting

Like DIRECTV (Nasdaq:DTV), Dish Network (Nasdaq:DISH) must face the difficult reality that pay TV is not only a more competitive market with the entry of AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ). It also must compete with on-demand options offered by a host of services like Hulu and Netflix (Nasdaq:NFLX). Although the company doesn't look like a tremendous value today, it has a shrewd and savvy management team that could make things interesting.

Tough Times in Pay TV
For all of Dish Network's potential strategic options (more on this in a moment), the company's core satellite pay TV business has serious challenges. While Dish Network has a solid low-cost platform and offers products such as "Hopper" to its customers, the company has nevertheless been losing subs.

Please read more here:
http://www.investopedia.com/stock-analysis/2013/Dish-Network-May-Not-Be-Cheap-But-Itll-Be-Interesting-DISH-DTV-S-CLWR0115.aspx

Investopedia: Will A Sub-$3 Bid Get The Deal Done For Sprint?

When word came out last week that Sprint (NYSE:S) had approached Clearwire (Nasdaq:CLWR) with a $2.90 per share cash bid, the common reaction was that Sprint would have to do better. Well, Sprint has done better, and the Clearwire board has unanimously agreed, but I suspect that an extra 7 cents per share is not going to thrill Clearwire's investors.

Please read more here:
http://www.investopedia.com/stock-analysis/2012/Will-A-Sub-3-Bid-Get-The-Deal-Done-For-Sprint-S-CLWR-DISH-T1217.aspx

Investopedia: The Long Awaited Sprint-Clearwire Deal Is Closer Than Ever

Given large ongoing losses and sizable funding needs, most investors have considered it a given that Clearwire (Nasdaq:CLWR) will be acquired. With its approximate 50.5% ownership stake, meaningful high-end spectrum needs and a recent influx of capital from Japan's Softbank, Sprint (NYSE:S) was seen as the most likely candidate. Now it seems like Sprint is finally making its move, but the market reaction and relative valuation suggest Sprint may have some work left to do.

Please continue reading here:
http://www.investopedia.com/stock-analysis/2012/The-Long-Awaited-Sprint-Clearwire-Deal-Is-Closer-Than-Ever-S-CLWR-PCS-T1214.aspx

Investopedia: The Softbank-Sprint Tie-Up Seems Like Only The Beginning

Sprint Nextel (NYSE:S) has always seemed to be uncommonly controversial for a carrier. Not only has the company had its ups and downs with mergers and acquisitions, but the Street has never seemed entirely comfortable with the its plans vis-a-vis Clearwire (Nasdaq:CLWR). Even now, after the company has reached an agreement to sell a controlling stake to Japan's SoftBank, it doesn't look like there's any imminent end to the controversy and uncertainty.

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http://www.investopedia.com/stock-analysis/2012/The-Softbank-Sprint-Tie-Up-Seems-Like-Only-The-Beginning-S-CLWR-T-ALU1016.aspx

Investopedia: AT&T's Bold Bid For T-Mobile Ends In Failure

Maybe there's some truth to the aphorism "nothing ventured, nothing gained", but AT&T (NYSE:T) has come up snake-eyes on its latest roll of the dice. In what had become not much of a surprise at all, AT&T announced Monday evening that it was abandoning its bid to acquire Deutsche Telekom AG's (OTCBB:DTEGY) U.S. operator T-Mobile because of what increasingly looked like insurmountable regulatory objections.

The News  
AT&T is abandoning its bid to combine with T-Mobile and become an even larger player in the U.S. mobile services market. This outcome is not all that surprising. Apart from the howls of self-interested parties like Sprint (NYSE:S), ample regulatory objections and blockades were raised to this deal. There's no doubt that it would have represented considerable consolidation (blending the No.2 and No.4 providers), though T-Mobile's position as something of a weak sister in the industry may have led AT&T to believe it could get the deal done. (For related reading, see How To Pick The Best Telecom Stocks.)

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/ATTs-Bold-Bid-For-T-Mobile-Ends-In-Failure-T-VZ-S-ALU-DISH-CLWR-DTEGY1220.aspx

Investopedia: Ciena Tries to Carve Out Another Run

Investors have been waiting a while to see a sustained rebound in shares of optical networking specialist Ciena (Nasdaq:CIEN). Although this one-time tech darling has given bargain-hunters a few good recovery pops in recent years, the shares are just a pale shadow of what they used to be. Unfortunately for investors, it is hard to see how the company will build enough of a technology buffer, to ever again reap the sort of margins that will make this a winning tech stock holding.

A Decent End to the Fiscal Year 

Although Tier 1 telecom spending has slowed recently, Ciena still managed to produce a decent result. Revenue rose almost 5% on a sequential basis and 9% on an annual comparison, as good performance in optical transport offset flat results in switching and pronounced weakness in CESD. Looking at the major customer data, it looks like AT&T (NYSE:T) has pulled back on CESD spending and Verizon (NYSE:VZ) has not dramatically picked up its orders.

To read more, please click below:
http://stocks.investopedia.com/stock-analysis/2011/Ciena-Tries-To-Carve-Out-Another-Run-CIEN-ALU-S-T1213.aspx

Investopedia: American Tower Still Great, And Still Expensive

Communications tower owner American Tower (NYSE:AMT) knows well what many landlords have long realized; it is a great business to own a valuable asset that your customers can't build for themselves, but must have in order to stay in business. Better still, not only is there still growth potential in the U.S., from higher occupancy, more towers and higher prices, but even greater potential overseas.

A Fairly Good Third Quarter  
There are no complaints with the top line numbers that American Tower reported. Revenue rose almost 23% to $630 million, surpassing the average analyst estimate and matching the high end of the range. While overseas growth was eye-popping at 79% year-on-year, domestic growth of 9% is pretty good, in its own right, considering how mature the U.S. mobile phone market is.

Read the complete piece here:
http://stocks.investopedia.com/stock-analysis/2011/American-Tower-Still-Great-And-Still-Expensive-AMT-VOD-SBAC-VZ-T-S-CCI-TEF-FTE-CHL1102.aspx

Seeking Alpha: Powerwave May Fade To Black

Wireless equipment maker Powerwave (PWAV) has given its investors quite the thrill ride over the last four years, but the latest dive may have investors and analysts wondering if this company can ever achieve a sustainable base of business. Bad quarters happen to every company eventually, but very few established companies miss their revenue target by 50% and investors should ask themselves whether the sizable return potential here is still worth the ongoing risk and volatility.

A Terrible Third Quarter
After the close Tuesday, Powerwave announced that it was going to report a horrible third quarter result. Citing significant slowdowns at AT&T (T) and T-Mobile and disruptions in the Mideast and North Africa tied to the political upheavals, management announced that revenue would come between $75 million and $79 million – more than 50% shy of the average analyst estimate of $168 million.

Read the full piece here:
Powerwave May Be About To Fade To Black

Investopedia: Sprint Garrotes Clearwire

If there were anything approaching justice in the business world, Sprint (NYSE:S) and Clearwire (Nasdaq:CLWR) would be forced to stay joined at each other's hip, forever. If an investor wants to see two case studies in how companies can completely screw up a potentially lucrative wireless business, these are the companies to seek out. Now with both companies deep in a hole, Sprint has decided to bring out an ever bigger shovel, but this may ultimately be the shovel that buries Clearwire.

We'll Go Our Own Way  
Sprint and Clearwire have worked together for quite some time, with Clearwire basically serving as the 4G network for Sprint. Unfortunately, Clearwire has not done a great job with its rollout. Although the company is rolling in valuable spectrum and was an early-mover in 4G, dead spots in urban areas became an unacceptable problem, and Clearwire's geographic coverage expansion slowed to a crawl. What's more, Clearwire has bickered with its partners over rollout strategies along the way, including Sprint.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Sprint-Garrotes-Clearwire-S-CLWR-VZ-T-VOD-CMCSA-CHL-TWC1014.aspx

Investopedia: Best Buy Needs To Tune Out The Haters

Much to the chagrin of a lot of shorts, hedge funds and commentators, Best Buy (NYSE:BBY) stubbornly refused to go out of business this past quarter. That's hyperbole, of course, but perhaps not by much - there is no shortage of commentary out there saying that Best Buy is utterly doomed, needs to close stores and/or start subletting space in order to survive. (Learn more in The 4 R's Of Investing In Retail.)


While it is true that Best Buy is indeed going through some hard times and it likewise true that consumer buying preferences have changed, a panicked attempt to pacify institutions is not what the company or its shareholders need. Best Buy is still producing positive cash flow has not yet reached a point of no return.

Challenging and Disappointing Second Quarter Results
That is not to say that Best Buy is doing well, as it clearly is not. Revenue was flat for this quarter (the company's fiscal second quarter) despite a nearly 3% decline in comp-store sales. Although domestic sales were down (down 1.5% on a 2.7% comp decline), international sales rose 4.6% despite a greater-than-3% decline in comps.



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http://stocks.investopedia.com/stock-analysis/2011/Best-Buy-Needs-To-Tune-Out-The-Haters-BBY-HGG-RSH-WMT-COST-GME-AAPL0915.aspx

Investopedia: AT&T Will Have To Fight The Government For T-Mobile

When AT&T (NYSE:T) proposed to acquire Deutsche Telekom's (Nasdaq:DTEGY) U.S. subsidiary T-Mobile and combine the #2 and #4 wireless service providers into the #1 provider, it seemed like a bold and risky move. The risk on this deal has just ratcheted upward in a major way, as the Department of Justice has dug in its heels and filed suit to block the deal on antitrust grounds. The high break-up fee that AT&T owes DT if the deal falls through gives the company strong incentive to fight this one out, but the odds of success are not looking great.

Department of Justice Itching for a Fight   
The Department of Justice is adamant that it does not want this deal to go through. Keep in mind, the FCC just asked AT&T for more information about a month ago and by all accounts the agency is not even close to finishing its review of the transaction. The Department of Justice doesn't seem to care, though, and has already decided to oppose this deal through the courts.

To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/ATT-Will-Have-To-Fight-The-Government-For-T-Mobile-T-S-VZ-AMT-CELL-LEAP-PCS0905.aspx

Investopedia: Avago Trumps The Cycle

Semiconductors have not been doing well as a group lately, but that does not mean there isn't room for companies with better mousetraps to gain share. As one of those analog chip companies with a better mousetrap, Avago Technologies (Nasdaq:AVGO) is standing out not only for its relatively better stock performance, but also its stronger relative underlying financial performance. 


Fiscal Second Quarter Results Show Ongoing Growth
Semiconductor companies have hit an air pocket lately in terms of their growth momentum, but Avago is still growing its business. Revenue rose almost 9% from the same quarter last year and about 2% on a sequential basis, fueled in large part by better results in the wireline business. The wired business saw revenue grow 5% sequentially (and 30% year-on-year), while the industrial/auto business saw 1% sequential revenue growth. Wireless revenue was flat and the company's consumer/computing business was up 3% (though down 38% from last year and a small part of the overall business). (For more, see A Primer On Investing In The Tech Industry.)

Like most tech companies, Avago levered better revenue into stronger profits. Gross margin (GAAP) slipped about 20 basis points on a sequential comparison, but rose nearly four full points from last year. Operating income was a bit more mixed - GAAP operating profits rose 28% from last year (and the margin expanded), but contracted 3% on a sequential basis in large part because of higher SG&A expense (and higher stock option expense within that).


To read the full piece, please continue below (via the link):
http://stocks.investopedia.com/stock-analysis/2011/Avago-Trumps-The-Cycle-AVGO-IBM-VZ-AAPL-S-BRCM-QCOM0531.aspx

Hey Clearwire, Sprint May Just Not Be That Into You

What happens if someone pulls out all the stops to throw a legendary party, and then nobody shows up? Or, alternatively, people show up but the host goes bankrupt before the party really gets going? That may encapsulate the preeminent fear about would-be 4G giant Clearwire (Nasdaq:CLWR). The company is burning cash at a prodigious rate, Verizon (NYSE:VZ) and AT&T (NYSE:T) continue to go about their business, and Sprint (NYSE:S) seems outwardly a little more skittish about its unofficial subsidiary. 

A $1.3 Billion Debt Top-Off
About two weeks ago, Clearwire closed on a round of financing that brought the company over $1.33 billion in additional debt. Two tranches went out with coupon rates of 12% (though the '15 debt is trading at a yield-to-maturity of about 8.8%), while the third was a convertible with a coupon of 8.25%. Clearly, then, we are not talking about a AAA issuer. As part of its special relationship with the company, Sprint will have the right to participate (buy debt) up to 50%, and so the company may issue more debt (in excess of $700 million) within the next month.


Clearly the company needs the cash. Clearwire's capital expenditures have been averaging over $650 million a quarter lately, but the company had about $1.3 billion in cash and short-term securities on the balance sheet at the end of the September quarter (as well as an inconsequential amount of receivables and long-term investments). With this deal, then, Clearwire has bought more time but this is quite likely not the last time the company will need to raise capital.


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http://stocks.investopedia.com/stock-analysis/2010/Hey-Clearwire-Sprint-May-Just-Not-Be-That-Into-You-CLWR-S-VZ-T-VOD-AAPL-MOT1217.aspx

A New Patent Problem For Smartphone Makers

It looks like we have at least a momentary interruption in the battle royale between smartphone designers Apple (Nasdaq:AAPL), Google (Nasdaq:GOOG), Microsoft (Nasdaq:MSFT), Motorola (NYSE:MOT), HTC and LG Electronics. In the midst of the scramble to the top of the consumer electronics mountain, these companies now have to deal with an outsider throwing rocks from the outside. 

A Blast From The Past
NTP, a patent holding company, has filed suit against all of these companies alleging that they violated NTP's patents concerning wireless email technology. (Learn more about the importance of patents, see Patents Are Assets, So Learn How To Value Them.) Patent litigation is nothing new in the technology space, but there is a little different twist in this case. NTP rose to prominence (or infamy, depending upon your point of view) about five years ago when it aggressively pursued a case against Research In Motion (Nasdaq:RIMM) that threatened to shutdown down Blackberries everywhere. Ultimately, NTP obtained a $600 million settlement from RIM - no trivial amount of money. 


For the full piece:
http://stocks.investopedia.com/stock-analysis/2010/A-New-Patent-Problem-For-Smartphone-Makers-AAPL-GOOG-MSFT-MOT-RIMM-T-VZ0715.aspx