Sprint Nextel Corporation (S), DISH Network Corp (DISH) & 5 Ways To Play These ‘Special Situations’

Page 1 of 2

Pentwater Capital Management is a hedge fund founded and managed by Matthew Halbower in 2007. He employs an event-driven investing strategy, with the equity portfolio valued at a little over $2.7 billion. During the first quarter of 2013, Halbower has made some important changes to his holdings, particularly in special situations plays. It’s important to track hedge fund sentiment because it has been found that retail investors can outperform the market if they know where to look.

Top dog

Sprint Nextel Corporation (NYSE:S)

The top pick of Halbower is Sprint Nextel Corporation (NYSE:S). Pentwater Capital increased its ownership of Sprint Nextel Corporation (NYSE:S) by 66% in the first quarter (compared to the end of 2012), and currently owns a little over 31 million shares with a reported value of $195 million. The stock’s price has advanced 27% in 2013, and it did beat the Street’s expectations in its latest earnings report. The telecom posted a loss of $0.21 per share and revenues of $8.8 billion, versus estimates of EPS of -$0.27 and revenues of $8.7 billion for the second quarter.

In case you’ve been living under a rock, in October 2012, Japanese telecommunications company SoftBank declared their intention to acquire 70% of Sprint Nextel Corporation (NYSE:S) for $20.1 billion. On April 15, 2013, a higher preliminary offer of $25.5 billion was made by DISH Network Corp (NASDAQ:DISH), and rumors now say that Sprint Nextel Corporation (NYSE:S) is planning on delaying shareholders’ SoftBank vote until DISH Network Corp (NASDAQ:DISH) can work out a binding offer.

This makes logical sense, just as it does for investors to consider following Pentwater into Sprint Nextel Corporation (NYSE:S). Wall Street sees the stock as a merger arbitrage play, with its average price target representing a 3.5% upside from current levels. Someone will lose this bidding war, but it will not be Sprint Nextel Corporation (NYSE:S), and regardless of what happens, there’s potential for more appreciation in the future.

Number two

Virgin Media Inc. (NASDAQ:VMED) has been a very popular stock lately, with many hedge funds opening massive positions in the British entertainment and communications provider in the past two quarters. Pentwater Capital did not stay behind, acquiring 3.8 million shares, valued at $186 million in Q1. The company posted earnings of $0.48 per share and revenues of $1 billion in its latest quarter, and on February 6th, US cable company Liberty Global Inc. (NASDAQ:LBTYA) announced an agreement to takeover Virgin Media Inc. (NASDAQ:VMED) for a reported $15.8 billion. On April 15, the European Commission gave the deal the green light, and like Sprint, it’s clear that Pentwater was optimistic that no regulatory fears were warranted in the deal.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Jobs that May Exist in the Future

The Absolute Best States to Shop in the US

5 Best States for Golf Adventures

Top 15 Places To Visit Before You Die

10 Most Expensive Smartphones in the World

10 States with Lowest Physician Density

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!