Leap Wireless COO to Step Down and 4 Telecom Titans Attracting Interest
AT&T, Inc. (NYSE:T): Although AT&T and Verizon are offering an attractive dividend yield, their respective payout ratios may be too high for the allowance of any dividend growth. Furthermore, contracting earnings and squeezing margins could make it difficult for the companies to maintain their dividend payments. The shares traded up $0.19 (0.54%) recently at $35.54.
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Sprint Nextel Corp. (NYSE:S) has officially launched its 4G LTE network, which covers 15 metro areas, including; Atlanta, Dallas, Houston, and Kansas City. The company still intends to have the LTE buildout “largely completed” by the conclusion of 2013. Since Samsung’s Galaxy S III and other high-end Android phones, and the upcoming new iPhone expected to do the same, now support LTE (but not Sprint’s WIMAX 4G network), Sprint is crunched for time. The shares traded up $0.11 (3.30%) recently at $3.44.
Verizon Communications Inc. (NYSE:VZ): Due to unfavorable market conditions, MobiTV, who counts AT&T (NYSE:T) and Verizon as customers, has withdrawn its IPO plans, according to the Wall Street Journal. The shares traded up $0.12 (0.25%) recently at $45.33.
Leap Wireless International Inc. (NASDAQ:LEAP) and Cricket Communications began a Seperation Agreement on July 13 with the Company’s COO Raymond J. Roman. This agreement purges Roman from his duties as an officer of the company, effective immediately, and his employment with the company will end on July 31. In connection with the termination, the company will offer Mr.Roman a $495,000 cash payment. Roman will no longer vest in long-term incentive awards that the company granted him previously. Mr. Roman will provide consulting services for the company, beginning August 1 until the conclusion of the year. The shares traded down $0.18 (2.77%) recently at $6.32.
JDS Uniphase Corporation (NASDAQ:JDSU) estimates were reduced following channel checks suggesting that the Wireline capex environment is still challenged, but the firm still believes that the near-term risk/reward for shares is positive. According to Jefferies, JDSU’s results are mostly not correlated with Adtran (NASDAQ:ADTN) and Finisar’s (NASDAQ:FNSR) poor guidance. The firm keeps a Buy rating and a $13 price target, down from $15, on the stock. The shares traded down $0.10 (1.17%) recently at $8.90.
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