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Sprint ( S ) is stuck competing only on price vs. its wireless services rivals AT&T ( T ), Verizon Communications ( VZ ) and T-Mobile US ( TMUS ), says Pacific Crest Securities, which downgraded Sprint stock to sell. Analyst Michael Bowen, in a research note late Tuesday, calls Sprint a “tactical short” ahead of March-quarter earnings. Verizon reports earnings on April 21; AT&T follows on April 26. Sprint stock, which has traded below 6 the past 17 months, was down more than 4% in early trading in the stock market today , near 3.50. Sprint, majority-owned by Japanese telecom SoftBank ( SFTBY ), extended its “cut your bill in half” promotion into the March quarter, its fiscal Q4. The promotion offers subscribers that switch from AT&T, Verizon or T-Mobile a 50% price cut on their existing plans. Sprint recently also relaunched a 30-day guarantee for new users. “Despite the continuation of its aggressive 50%-off promotion, we expect Sprint to report net postpaid additions and churn worse than our previous expectations,” Bowen wrote. “Sprint’s 2016 guidance should not be taken at face value, and the company has a long turnaround ahead of it. “Sprint’s lack of competitive tools other than price suggests fundamental issues. If 50% off isn’t working, what will? We recommend investors take cover into Sprint’s fiscal Q4 earnings, and we would be selling shares.” He titled his report “Light In Tunnel May Be A Train.” Regulators have been opposed to any Sprint merger with T-Mobile, an occasional rumor that has cooled lately. Image provided by Shutterstock . Scalper1 News
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