Sprint Nextel Corporation(NYSE:S) shares recovering from yesterday’s sharp loss. Today’s rally came in despite the fact that Deutsche Telekom AG (DTE) is all set to merge with its T-Mobile USA division with MetroPCS (PCS) Communications Inc., which means Sprint Nextel is behind now.
While Sprint Chief Executive Officer Dan Hesse has said the third-largest U.S. mobile-phone carrier will play a role in industry consolidation, Stifel Financial Corp. says a tie-up between MetroPCS and T-Mobile USA will limit Sprint’s takeover options.
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Sprint is trading at a 58 percent discount to sales, the lowest in the group, according to data compiled by Bloomberg.
While Sprint won’t be forced to immediately do a deal, it could still try to merge with T-Mobile USA or buy spectrum from Dish Network Corp. (DISH) or Verizon Wireless, said Piper Jaffray Cos.
Shares of Sprint are up 6.50% to $5.22.
Netflix, Inc.(NASDAQ:NFLX) is another stock which is showing some relief after the slump in the past one year, which had wiped out the company’s 50% market cap.
Today’s 9% rally after analyst at Citi issued a note to its clients stating that overall customer satisfaction with Netflix has started to show sign of recovery for the first time since last summer, while adding that the company's competitive position as an online video destination continues to tough. The firm further noted about the improving churn propensity and improvement in perceived streaming content selection as reasons for the buy rating.
Shares of NFLX jumped 9.50%.
Vringo, Inc.(NYSEAMEX:VRNG) is the stock of the day as it soared 30% to $4, its highest level since late July, 2012.
This morning, the company got positive news from a federal judge related to its ongoing patent fight with Google. The judge concluded that at this moment no summary can be issued related to case. After today’s judgment, Vringo has cleared one of the last hurdles that could have stopped the company from going to trial Oct. 16.
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The judge has further ordered that the parties engage in settlement discussions between United States magistrate, Judge Lawrence R. Leonard at 10:30am, Tuesday October 9, 2012. There are other talks scheduled to take place on October 5th.