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The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider wireless carrier Sprint Nextel (NYSE: S ) . Though the company has shown some dramatic improvements lately, you'll find a few of the 1,810 Motley Fool CAPS members weighing in on the company offer reasons to be bearish.
Here at the Fool, we like to consider both the good and the bad sides of an investment, so I'm highlighting three of the main bearish arguments on Sprint Nextel today. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Sprint Nextel in CAPS.
1. Getting squeezed
While both Verizon (NYSE: VZ ) and AT&T (NYSE: T ) tacked on more subscribers in the third quarter, Sprint Nextel, like T-Mobile, saw its subscriber count drop. Losing subscribers has become a trend for Sprint, and many CAPS members have little confidence that current efforts will be enough to turn it around. Regardless of gains in the prepaid space, many argue that Sprint still has to stop the bleeding on the postpaid end.
2. Lacking profits
AT&T has benefitted from the Apple (Nasdaq: AAPL ) iPhone, and Verizon looks for a boost from Motorola's (NYSE: MOT ) much-anticipated Droid and a new version of the Blackberry Storm from Research In Motion (Nasdaq: RIMM ) . But Sprint has had trouble finding a catalyst to capture consumer mindshare and bring the company back to profitability. Its recent third-quarter loss added to a string of losses, leaving some CAPS members bearish on its ability to get out of the red.
3. Debt load
Sprint's balance sheet is stacked with debt and it continues to invest money in Clearwire (Nasdaq: CLWR ) , which it is relying on for its 4G expansion. Standard & Poor's recently warned that it may cut Sprint's credit rating due to its weak performance this year, and many investors echo the same concerns as the company faces a challenging environment.
To see details of what CAPS members are saying now about Sprint Nextel, just click on over to Motley Fool CAPS and have a look -- or add your own thoughts directly to this story in the comments box below.