Filed under: Sprint Nextel Corp (S), Options, Technical Analysis
Sprint Nextel Corp. (NYSE: S) shares are flat this morning even as most other stocks are falling. The Wall Street Journal reported yesterday afternoon that the company plans to lay off several thousand employees in a move designed to boost profit margins so that it can better compete with rivals AT&T (NYSE: T) and Verizon (NYSE: VZ). S cut its payroll by about 5,000 jobs last year. Analysts are saying that although cutting costs will help the company, the most pressing issue for S will be finding a way to stop its customers from defecting to its two big rivals. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on S.
After hitting a one-year high of $23.42 in June, the stock hit a one-year low of $12.10 last week. S opened this morning at $12.23. So far today the stock has hit a low of $12.20 and a high of $12.47. As of 10:30, S is trading at $12.35, down 1 cent (-0.1%). The chart for S looks bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.
Continue reading Sprint-Nextel (S) to cut thousands of jobs
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