Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Sprint Nextel (NYSE: S ) fell more than 12% in early trading before closing off 7%. The nation's third-largest carrier reported better-than-expected third-quarter results but scared investors by committing to a new deal with Clearwire (Nasdaq: CLWR ) .
So what: Just last month, Sprint said it would build an LTE network with LightSquared. Today, CEO Dan Hesse told investors that Sprint and Clearwire had entered a "nonbinding cooperation" agreement to build yet another LTE network. To say this is getting silly is insulting silly people.
Now what: Either way, Sprint needs a faster data network to keep pace with the LTE buildouts under way at AT&T (NYSE: T ) and Verizon (NYSE: VZ ) . I'm just not sure a deal with Clearwire will help much, if at all. Do you agree? Disagree? Please weigh in using the comments box below.
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