Sprint Nextel Corporation (S) Looks Good Despite Being in the Hotseat

I cannot believe the run Sprint Nextel Corporation (NYSE:S) has had. It is at $7 now, and it seems like just a few months ago it was at $3. Oh, it actually was. Monumental gains behind us, Sprint Nextel Corporation (NYSE:S) is probably not done yet. I think mobile is heading into a rough transition, because it feels like things are finally settling down. People also seem to be getting irked by nickel and dime services.

Sprint is turning around

The Sprint Nextel Corporation (NYSE:S) subscriber numbers are pretty impressive. Forty-three percent of 1.5 million iPhone activations were completely new to Sprint Nextel Corporation (NYSE:S). The company is also recapturing a good number of customers from the Nextel network that is being shut down. It is also ahead in its LTE deployment with more sites online than targeted. The number of under construction sites is staggering compared to what is already completed, and Sprint Nextel Corporation (NYSE:S) is being very aggressive about its deployment. There is already 4G LTE in 88 cities but another 600 are in various states of construction, and in the next few months, another 170 cities will be coming online. The next few months should see Sprint Nextel Corporation (NYSE:S)’s LTE footprint double.

The strategy is a sound one. While its footprint might not be as broad as Verizon Communications Inc. (NYSE:VZ)‘s , it is in the most important spots. I could rehash earnings all day, but this information is available to you. We got no word on the flurry of transactions that the company has its finger in. The DISH offer has not really moved forward, Clearwire is still in the hotseat, but the SoftBank deal is getting closer. The potential bid war actually might hurt Sprint a little. The initial SoftBank deal would have put a lot of money on the balance sheet that can be used for upgrades, instead SoftBank has to offer investors more.

Sprint’s multi-year turnaround plan is in full swing, but it is still so much smaller than its rivals. The unlimited data plan is a good start, and is probably the most important feature of the company. Sprint is also spending more time on prepaid than its competition, and prepaid in general has been growing strongly through the Boost and Virgin brand. Sprint saw 18% YoY growth in prepaid.