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Sprint: Don't Follow Executives Into Stock


  • Sprint insiders make large stock purchases at prices around $5.
  • The company hasn't resolved liquidity issues with a likely asset sale required.
  • The pricing war and liquidity situation haven't improved suggesting investors don't follow the insiders in purchasing the stock at $5.
In the last couple of weeks, it was disclosed that Sprint (NYSE:S) CEO Marcelo Clarue and CFO Joseph Euteneuer purchased shares of the struggling wireless provider. The amounts were impressive with the CEO buying five million shares of the company's stock for nearly $25 million and the CFO buying roughly $100,000 worth of stock. Though multiple insider purchases of that magnitude are typically a bullish signal, one major issue needs resolution before investors should blindly follow the executives into the stock.

Read the full article at Seeking Alpha.

Disclosure: No positions mentioned. Please review the disclaimer page for more details. 


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