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Make a Dash for Sprint

Posted at 7:17 a.m. EDT on Friday, Aug. 10

Why do people spend so much time talking about Research In Motion ( RIMM), Nokia ( NOK) and Yahoo! ( YHOO)? Why?

And why don't they spend more time talking about Sprint ( S)?

I have no idea how the turn will go at Yahoo! I do know that it will not be a quarter or two turn. Maybe three? Perhaps four. The company has no mobile, social or cloud strategy. Until it does, I think you've got some real flatlined time on your hands.

Research In Motion? That's only about takeover. You have 70 million subscribers and a good keyboard, but it is a closed ecosystem so you are buying a list and some patents and an enterprise services business. That list is way too expensive for almost all companies, although the keyboard patents have real value and we have rumors right now that IBM ( IBM) wants the enterprise service business. One would have to hope that the enterprise services business, like the patents, are worth so much that this could be a positive situation, like AOL ( AOL), and not a negative one, like Kodak.

Still, I would not recommend a stock just on its parts valuation when the fundamentals are horrendous and the spiral down in cash has just begun. That's too dangerous.

Nokia's only interesting to people because of its low-dollar price tag. If it were to do a 10-for-1 one reverse split no one would touch it.

But Sprint? Here's a company that generates a huge amount of cash flow that needs to raise cash and can now do so, which will dramatically lower its interest charges in a way that is certainly profoundly positive. RIMM and NOK are in vicious cycles down; Sprint's in the virtuous cycle up.

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