CELL was down over 15% today on news of the AT&T-T-Mobile deal:
AT&T-T-Mobile Deal: Here’s a List of Losers
By Dave Kansas
Wall Street Journal
March 21, 2011, 2:21 PM ET
So, aside from Sprint Nextel, which stocks look like losers in the proposed AT&T-T-Mobile deal?
Lots of cross-currents on this one, but the market is making some bets already on who benefits least when the music stops. Let’s run down the list:
-- Motorola Mobility (-3.4%). In theory, fewer places for the company to sell its Google Android supported phones and tablets.
-- American Tower Corp. (-8%). Consolidation means fewer cell towers that American Tower provides.
-- Crown Castle International (-5%). Another tower maker facing the same challenges as American Tower.
-- Clearwire (-3.5%). Dow Jones reports the company had plans to sell excess spectrum to T-Mobile to raise some cash. Hard to see that deal happening now.
-- Brightpoint (-16%). The cellphone distribution and logistics company counts T-Mobile as a big customer, AT&T not so much. Acquiring companies tend to stick with their own folks.
Some analysts also fret that anticipated network upgrades may get delayed by the combination. But for now, many of those stocks are doing just fine. Among them, JDS Uniphase, Ciena, Alcatel-Lucent, Juniper, Cisco Systems, Oclaro and Finisar are all trading higher. The group got banged up on Friday, so part of the trade is a recovery from that shellacking.
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