3 Reasons Sprint (S) is Set to Crash

Sprint (NYSE: S ) is looking pretty right now. The stock hit a 52-week-high of
$5.37 on Tuesday, a run that made it look to some out there that the beleaguered
telecom might just be a contender once more. Its understandable why some
investors might be tempted, considering the stock still hasnt hit UBS target
price of $5.50 or Raymond James (NYSE: RJF ) even more promising $6.00. Sprints
earnings were good, reporting that revenue was up almost 3% year-on-year for the
first quarter of 2011, totaling $8.3 billion. The company brought on 310,000 new
contract subscribers and 846,000 prepaid subscribers to its mobile and web
services during the quarter the first that didnt see Sprint shedding customers
in some time. So is this Sprints great moment, when the faded communications
giant bites back at Verizon (NYSE: VZ ) and AT&T (NYSE: T )? Dont believe the
hype. While Sprint may still be a compelling day-trading opportunity for
investors, this isnt the moment that it becomes a stock that will grow and grow.
Here are three reasons that Sprints businesses isnt about to grow in meaningful
ways. No T-Mobile On Mar. 9, AT&T announced that it was acquiring T-Mobile USA
from Deustche Telekom with the two merging in 2012. On Mar. 8 though, the
business world thought that it was Sprint that was going to do the merging with
T-Mobile , with Deutsche Telekom controlling a 50% stake in the new company. Had
that happened, there have been a chance to fendoff AT&T and Verizon with the
added resources brought on by T-Mobile.  Sprint is switching its Clearwire
(NASDAQ: CLWR ) WiMax 4G network to an LTE 4G network the difference in which
is highly technical, but is important for smartphone manufacturers that are
making the latter technology standard. With Sprint still uncommitted to an LTE
switchover, things dont look good for the company next year. No iPhone Apple
(NASDAQ: AAPL ) and its iconic iPhone is a significant weapon in the telecom
arsenal right now. While adding the device may not have made Verizon into the
unstoppable juggernaut some analysts predicted it would, it has, after just
three months on the service, become a significant part of that companys
smartphone business. With a 4G iPhone 5 compatible with AT&T (and by next year
T-Mobile) and Verizons LTE networks expected in September , Sprint will be the
last major national mobile provider not supporting Apples massively successful
phone. AT&T activated 3.6 million iPhones in the first quarter of 2011 alone.
Thats just a fraction of the audience that will continue to elude Sprint. More
Losses Heres the inescapable fact: Sprint hasnt turned a profit since 2007. The
company reported an operating loss of -$595 million in 2010, and a net loss of
nearly -$3.5 billion. Sure, the company beat expectations for the first quarter,
but considering the factors already discussed here, it doesnt look like Sprint
will suddenly see a remarkable influx of new money. Not from new subscribers,
not from anywhere. As of this writing, Anthony John Agnello did not own a
position in any of the stocks named here. Follow him on Twitter at 
@ajohnagnello and  become a fan of  InvestorPlace on Facebook.