T-Mobile (TMUS) and Sprint (S) !!! Stop trading. At least they used to stop trading. Now a news service reports talks, the two stocks take off, the tower stocks get clobbered and everybody's fine with this.
Wait a second. Can we get the companies to say if it is true? Can we accept that reporting these days often causes people to take actions that they wouldn't if they knew to what degree the companies are really talking? We don't know how real the talks are. How come they aren't worried about antitrust. How come they aren't talking out loud.
Now you can say that the companies can't talk because they aren't ready to. But maybe they can't talk because they aren't talking now but may have another time. Or that they are just kicking it around.
I have to tell you, if I had not read the excellent Moffett Nathanson piece today about how there could be a re-start for the talks and that there is something like $40 billion in synergies, I would have said, just out loud, give me a break. An antitrust department that wants to block ATT (T) and Time Warner (TWX) will certainly want to block Sprint and T-Mobile given how anti-competitive that move is.
So, here's the deal. If I owned Sprint I would sell it. If I owned T-mobile given that I like the stock and the company I would trim some and let the rest run.