NEW YORK ( TheStreet) -- With SoftBank recently completing its acquisition for a controlling stake in Sprint (S), what's the plan going forward? TheStreet's Jim Cramer and Brittany Umar give investors a peek at what to expect.
According to Cramer, investors should avoid the stock ahead of next week's earnings report, scheduled for Tuesday, July 30.
Cramer said the company's quarterly results are going to be horrible and that analysts will probably be slashing estimates the following day as a result. While he doesn't like Sprint going into the quarter, the same cannot be said once the results are out.
He thinks the selloff is going to create a tremendous buying opportunity. His reasoning is twofold: The stock will likely pop higher on the company's next quarterly earnings results and it will be a solid investment over the next five years.Cramer said that although Sprint does not currently have a national footprint, it's only because of capital restraints. With the inclusion of SoftBank, though, that will no longer be the case, as the Japanese telecom and banking giant will be able to provide financing for the wireless company. Sprint also has more spectrum than its competitors, which creates strong firing power down the road for a national rollout of its coverage. Cramer also said the company is inexpensive and that a deal with T-Moble (TMUS) seems destined to happen. As Sprint continues to grow, he will be looking for a dividend from the company and said it will be much more on par with AT&T (T) and Verizon (VZ). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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