This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sprint Skeptics Cashed In

NEW YORK ( TheStreet) -- Sprint's (S) bears were right.

The stock took a beating Wednesday after the shrinking No. 3 wireless telco reported yet another drop in subscribers.

Sprint says 69,000 customers left in the fourth quarter, bringing the total number of defections to 1.2 million for the year, and a total subscriber count of 48.1 million. The good news, if you can call it that, is that the customer cancelation rate in 2009 wasn't as bad as the 4.5 million users who left Sprint in 2008.

Perhaps sensing that subscriber growth wasn't in the cards, investors took big bets that the stock was going to fall as the fourth quarter report approached. The short interest in Sprint increased 47% last month, putting Sprint seventh on the NYSE's top 100 list of short-interest stocks in January.

Sprint shares were down 10% to $3.23 in afternoon trading Wednesday after Sprint posted its fourth quarter earnings release.

To short a stock, investors borrow the shares with the expectation that they can pay back the shares at a lower price, and keep the difference.

Sprint wasn't the only tech company on the list. Qwest (Q - Get Report) ranked 12th on the NYSE roster, having seen a 4% increase in short interest, according to the January figures.

Nokia (NOK - Get Report), AT&T (T - Get Report) and Motorola (MOT) each saw a decline in short interest in January. That is generally a sign that investors are less pessimistic about the stock performance.

-- Written by Scott Moritz in New York.

Follow Scott Moritz on Twitter and become a fan of TheStreet.com on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NOK $7.29 -1.22%
Q $69.71 -1.25%
S $4.65 0.43%
T $34.54 -0.75%
AAPL $130.28 -1.14%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs