Jim Cramer's Best Blogs
Sprint is in it for the long haul, in part because it is making much more money per subscriber now that it did just a few months ago, in part because it has embraced the Apple(AAPL) iPhone, and in part because it has the biggest bargain for its customers when it comes to data use. The rally in the common stock will help Hesse to continue to raise the capital he needs to transition his Nextel customers to plain old Sprint, because bond buyers, which had already embraced the turn, will lap up new high-yielding bonds that Hesse can issue.
Zynga? Look, as someone who is addicted to Scramble With Friends, which I play with my daughter daily, I have learned to never pay for anything, and I so enjoy the "for free" aspect of this terrific game. Looks like I am not the only one who won't pay up. I see this company wilting away, as that earnings trajectory seems to be pointing toward losses, not gains. Plus, the fade nature of games -- remember Draw Something from OMGPOP? -- makes this hit-driven business totally unpredictable.
So many stocks have been left for dead when they get to $2, including, recently Nokia(NOK) , Alcatel-Lucent(ALU) and RadioShack(RSH) . It's a rare bird that can come out of that $2 death trap. The unheralded Sprint is one of them.
Zynga? All I can say is welcome to the graveyard that your Wall Street cheerleaders didn't see coming. Those analysts should be so ashamed for their sins of recommendation that remind me so much of the first Internet wave that crashed on the shore, drowning just about everyone, including the analysts, who told us to come on in because the water's fine.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.