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Thursday, October 11, 2012

Sprint Nextel Corporation (NYSE:S) Gapped Up On Report - S, TSLA, CLWR, LEAP


Sprint Nextel Corporation (NYSE:S) shares gained 13.69% to $5.72 in the morning hour and made a new high of $5.98. As per reports from Reuters, Softbank Corp is in talks to buy a majority stake in Sprint Nextel for more than 1 trillion yen ($12.8 billion). Softbank said reports about the talks were based on speculation and it had no comment. Sprint declined to comment.

Additionally, the company is holding off on an immediate counterbid for MetroPCS Communications Inc(NYSE:PCS) to gain time to scrutinize the carrier’s planned combination with T-Mobile USA Inc.
The news is severely impacting two other stocks- MetroPCS Communications Inc(NYSE:PCS) slumped 6.50%, while Clearwire Corporation(NASDAQ:CLWR) soared 30% as Sprint holds 49% of struggling the company.

Tesla Motors Inc(NASDAQ:TSLA) stock increased 0.53% to $28.55. Tesla Motors‘stock had its “buy” rating reconfirmed by research analysts at Jefferies Group in a report released this week.

Additionally, the company received a $10 million grant from California to buy assembly equipment and add 500 workers to build a rechargeable sport-utility vehicle in the state.

Leap Wireless International, Inc.(NASDAQ:LEAP) shares climbed 0.71% to $5.96 in the early hour after the company announced the syndication and closing of the previously announced $400 million senior secured term loan facility for its wholly-owned subsidiary, Cricket Communications. Net proceeds from the term loan facility will be used to redeem all of Cricket's $300 million in aggregate principal amount of outstanding 10% Senior Notes due 2015 and for general corporate purposes. Leap also announced that Cricket today issued a notice of redemption to redeem all of its 2015 Notes in accordance with the indenture governing the 2015 Notes.

Additionally, Leap Wireless stock was upgraded by investment analysts at Oppenheimer from a “market perform” rating to an “outperform” rating in a note issued to investors today.

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