Why are people so infatuated with the Troll?

Why are people so infatuated with the Troll?
Because the Troll speaks the truth. The Troll was right on target with 1.3 million in subscriber losses and revenue declines. And stock price is still down 70% from last year. Not much to get excited about folks. On the contrary, a run up in stock price was expected around the release of the Pre. Let’s remember what happened last time a Sprint CEO spun a story and claimed success. Two years back, Forsee inflated subscriber numbers by going after sub-prime customers. Eight months later he was out of a job and S was on an irreversible decline. Sound familiar?

Let’s dig a little deeper into Dan’s spin. S lost 1.3 million subscribers Q1 2009 compared 1.1 million in 2008. All competitors added more that 1.1 million. His claim that the economy hurt Sprint more than other carriers is laughable. Churn has increased significantly. Unlike subscriber additions, which are seasonal, churn reflects customer satisfaction at a point in time and is less affected by season. Dan’s attempt to include open source revenue streams and sub-prime customers in its customer numbers are a deflection to avoid the overarching problem of continuing and rising subscriber defections and substantial declines in revenues.

For all investors, make sure you pull your money out before third quarter announcement. Stock price will not go higher than $6.75, EVER. The Pre will get a lot of attention, but it cannot compete with the iPhone for high-end gadget wonks and business users will not breakaway from their Blackberries. It’s a nice device, but not a breakthrough product. The initial sales will come mainly from existing customers. Revenues may actually decline as a result of the Pre due to the high subsidy S will pay for each for sold.

S is still on pace for bankruptcy in 2010. The Troll has interesting sources who have revealed how the end game will play out. Check it out at sprinttroll.blogspot.com
The Troll