Another reason USC will be very difficult to buy out
Posted today:
Vodafone is giving VZW 18 months to pay off 12 BILLION in debt. Hard to pay off debt and buy other companies.
This $12B debt is the reason why their stock is so low and why USC's stock is the highest valued stock for a domestic carrier at over $103/share up nearly 40% in the last 3 months.
Verizon Wireless has waited more than 46 days for Amp'd to pay off its debts while it slogs through its Chapter 11, but Vodafone, the 45 percent stakeholder in Verizon Wireless said VZW should pay off its $12 billion in debts by 2009. Vodafone says it will have to wait another couple of years before receiving profits from its minority stake in the U.S. carrier. Under the current agreement, Vodafone receives no dividends from Verizon...
(continues)
Vodafone is giving VZW 18 months to pay off 12 BILLION in debt. Hard to pay off debt and buy other companies.
This $12B debt is the reason why their stock is so low and why USC's stock is the highest valued stock for a domestic carrier at over $103/share up nearly 40% in the last 3 months.
Verizon Wireless has waited more than 46 days for Amp'd to pay off its debts while it slogs through its Chapter 11, but Vodafone, the 45 percent stakeholder in Verizon Wireless said VZW should pay off its $12 billion in debts by 2009. Vodafone says it will have to wait another couple of years before receiving profits from its minority stake in the U.S. carrier. Under the current agreement, Vodafone receives no dividends from Verizon...
(continues)
...
Haha
thats sweet. I love how sometimes the small companies have the huge stocks. 😁
thats sweet. I love how sometimes the small companies have the huge stocks. 😁
...
High stocks are sometimes like targets on a company. It means your doing things right and you are wanted. Its also easier for a local small company to have less debt and higher stock. Look at the area USC has to invest in. Then look at the area that verizon sprint and att have to. Also what is USC doing for the future. Wimax? EVDO A? I don't think they are even looking at 4g and barely getting true 3g in place. They are happy with what a phone is suppose to be and thats to make calls. And they are doing it well. But soon will be left with customers that want only that.
...
I don't entirely agree with that. True USC is slow in developing things like the larger companies, its because $$$. Here is a good example, USC's Gross Operating income was roughly $2B. Verizon spent that in advertising alone last year. However... They are $12B in debt...
USC is developing EVDO A and they will probably partner with another company should they choose to go with a WiMax option.
Don't forget that USC invested MILLIONS last year in the spectrum auction and picked up enormous amounts of territory. Now they need some time to aquire funds and build those markets out. Its a time consuming process, they don't have the money that others do but they are also smart and don't want to go into debt to grow either. Thats smart busines...
(continues)
USC is developing EVDO A and they will probably partner with another company should they choose to go with a WiMax option.
Don't forget that USC invested MILLIONS last year in the spectrum auction and picked up enormous amounts of territory. Now they need some time to aquire funds and build those markets out. Its a time consuming process, they don't have the money that others do but they are also smart and don't want to go into debt to grow either. Thats smart busines...
(continues)
...
USCC will eventually go out of business because they do not get the "latest" phones until they are obsolete and they treat their employees like crap, which makes for crabby reps and no longevity. The company is a joke and they will go down, they are laughable to the real cell phone companies and if you work for them they have you brainwashed into thinking they are in the leagues with the big boys, they are not and you have no skills....take it from me I have been there and done that and decided to go to work for a real carrier and its a whole new world....
...
usctraitor said:
USCC will eventually go out of business because they do not get the "latest" phones until they are obsolete and they treat their employees like crap, which makes for crabby reps and no longevity. The company is a joke and they will go down, they are laughable to the real cell phone companies and if you work for them they have you brainwashed into thinking they are in the leagues with the big boys, they are not and you have no skills....take it from me I have been there and done that and decided to go to work for a real carrier and its a whole new world....
You said all that and after reading through it all I can say to you is.....
You need a hobby.
"sounds like someone has a case o...
(continues)
...
lmao!
He's forgotten something as well....
All the other carriers have turned their backs on the customers that got them going in the first place. Those are the basic, no frills customers, there are millions more of those people in the world than there are those who want a hyped up, sexy, expensive phone that does more than 95% of users will ever even know about. USCC doesn't ignore our techy customers, we just get there slowly and make sure we don't leave our bread and butter behind.
He's forgotten something as well....
All the other carriers have turned their backs on the customers that got them going in the first place. Those are the basic, no frills customers, there are millions more of those people in the world than there are those who want a hyped up, sexy, expensive phone that does more than 95% of users will ever even know about. USCC doesn't ignore our techy customers, we just get there slowly and make sure we don't leave our bread and butter behind.
...
well, if verizon already has 12 billion in debt, whats another 1 billion to buy USCC. 🙂
...
I seriously hope you are joking about the $1B number. They just bought RCC (Unicel) which only has 700K subscribers and service in 15 states for $2.67B.
I think it would take a WHOLE lot more money than that considering the current 7M subscriber base and the $97/share stock price.
I think it would take a WHOLE lot more money than that considering the current 7M subscriber base and the $97/share stock price.
...
U.S. Cellular is overall an excellent company. We've been around for 21 years, started as just a network ppl could roam on and have developed into our own network.
The leaders in this company have contended since I've been here that there is no intentions at this point to extend beyond a regional carrier, so yeah we're smaller but we serve the customers in these areas well.
We take testing our phones seriously, anyone who says we don't doesn't know what they are talking about. Every phone is going to have unforeseen issues when they are released, but I can just about guarantee you that we have less issues with our phones than most other carriers do.
Bottom line is we're an awesome company, and we're not going anywhere anytime soo...
(continues)
The leaders in this company have contended since I've been here that there is no intentions at this point to extend beyond a regional carrier, so yeah we're smaller but we serve the customers in these areas well.
We take testing our phones seriously, anyone who says we don't doesn't know what they are talking about. Every phone is going to have unforeseen issues when they are released, but I can just about guarantee you that we have less issues with our phones than most other carriers do.
Bottom line is we're an awesome company, and we're not going anywhere anytime soo...
(continues)
...
This whole industry is built on debt and plus Verizon doesn’t have a lot of debt actually. Just the problem of what does US Cellular offers to Verizon or to Sprint to allow for growth for both companies? That is the main question especially now a days that many markets are reaching that saturation limit and carriers and private equity are being cautious especially with the credit crunch to borrow money to help pay for these acquisitions. There needs to be a good return on investment and capital and if they don’t see it then it won’t happen. I was disappointed with Verizon and AT&T’s recent purchases. I think it wasn’t good for either of them to do so because of their friendly roaming deal with them, which is supposed to decline for dollars ...
(continues)
(continues)
...
$12B in debt isn't a lot? This is why their stock value is so low.
Verizon purchasing Unicel for nearly $3B was a good move for them... It gives them a much stronger grip on Northern New England without them having to go through all the beuracracies associated with putting new towers up. Simply put CDMA transmitters on existing towers and maintain the GSM network for roaming revenue.
Verizon even chose NOT to re-sign a roaming agreement with USC in this area due to the fact that contract negotiations were already in place to purchase Unicel.
Verizon purchasing Unicel for nearly $3B was a good move for them... It gives them a much stronger grip on Northern New England without them having to go through all the beuracracies associated with putting new towers up. Simply put CDMA transmitters on existing towers and maintain the GSM network for roaming revenue.
Verizon even chose NOT to re-sign a roaming agreement with USC in this area due to the fact that contract negotiations were already in place to purchase Unicel.
...
Yes $12B in debt isn’t that bad. Other companies in other industries has a lot more. Moreover, you needed debt to build out the networks anyway. Their market cap really has nothing to do with debt, but it is simply price per shares multiplied by outstanding shares. That is how you get the market value of the company. The Enterprise Value does have to deal with debt. As it is market cap plus debt minus cash and short-term investments.
Stock market obviously when someone comes public they issue shares and there are obviously a lot of analysis when it comes to what the analysts or investors think the stock is worth. Supply and demand is another reason. Performance could be a third. Market sentiment over all in that given sector and overall...
(continues)
Stock market obviously when someone comes public they issue shares and there are obviously a lot of analysis when it comes to what the analysts or investors think the stock is worth. Supply and demand is another reason. Performance could be a third. Market sentiment over all in that given sector and overall...
(continues)
...
