Wednesday, September 19, 2012

Wireless Telecom Stocks Jump On Sprint’s Dan Hesse Notes – S, CLWR, PCS, LEAP

Shares of wireless telecom jumped sharply on Wednesday as Sprint Nextel Corporation(NYSE:S)’s CEO Dan Hesse said at a Goldman Sachs conference today that the industry is moving for a period of consolidation.

“I do think there will be consolidation,” he said. “I would hope and expect that over the long term Sprint will take a very active role in that.” As per Bloomberg, Hesse said Sprint may potentially do two types of deals. One would be a large-scale transaction to gain bulk to better compete with AT&T and Verizon. The other would be smaller and offer quicker cost benefits and synergies.

Get More Updates on The Sector and Comparative Analysis Here

Hesse has said he wouldn’t want to enter a deal that would be a distraction while the Overland Park, Kansas-based company builds a new network using long-term evolution, or LTE, technology. Sprint is trying to catch up with more extensive LTE networks offered by Verizon Communications Inc.(NYSE:VZ) and AT&T Inc.(NYSE:T).

Here are top gainers within the sector:

Sprint Nextel Corporation(NYSE:S)  posted a gain of $7.13% to $5.56 and made multi month high of $5.71.

Clearwire Corporation(NASDAQ:CLWR) popped up over 13% to $1.56.

MetroPCS Communications Inc(NYSE:PCS) added 5.21% to $11.30.

Leap Wireless International, Inc.(NASDAQ:LEAP) rose 1.71%.

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