Here’s Why You Shouldn’t Buy What Sprint Nextel Corporation (S) Is Selling

With all that, you may consider adding Sprint to your portfolio as an aggressive growth alternative — it’s certainly cheap enough. Look hard before you leap, though, because Sprint has way too many unanswered questions. Its level of Clearwire ownership is still up in the air, the shedding of Nextel is in the works, the pending merger with SoftBank, and skyrocketing expenses, to name but a few – who needs that kind of uncertainty?

Another consideration: Since SoftBank announced its $20 billion deal for 70% of Sprint in October of last year, Sprint’s stock price has jumped nearly 20%, and that was on top of its already stellar run-up in value from the low $2 a share range. In other words, any upside potential Sprint has is already factored into its stock price.

If you feel compelled to invest in the wireless industry, stick with the 5% dividend yields (give or take), 4G spectrum dominance, and future growth opportunities that Verizon or AT&T offer. As for Sprint, it’s not worth the time or trouble, no matter how thick Hesse lays on the CEO-speak.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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