The excitement among investors over AT&T's acquisition of BellSouth has spilled over to a number of telecom companies, but not Sprint Nextel, puzzling some investors. Sprint Nextel's shares have hung around the $20 range since the beginning of the year. Interestingly enough, applying to Sprint the value of Cingular implied by AT&T's BellSouth bid would translate into big upside for Sprint shares, about a 50 percent gain from Sprint's current stock price, according to estimates by Elliott Associates, a Sprint shareholder. Also, making Sprint shares look inexpensive is the price Verizon Communications is willing to pay partner Vodafone for its stake in Verizon Wireless. Investors believe Sprint management has been too conservative when it comes to touting the company's strengths to Wall Street.
For more information about Sprint Nextel's stock price:
-check out this article from The Wall Street Journal (sub. req.)