On Wednesday, Sprint Nextel Corp. (S -1.92%) consented to buy air wave licenses and customers in the Midwest from the firm US Cellular Corp. (USM -12.40%) by paying USD 480 million, in the first transaction of Sprint since it got a multi billion-dollar cash Soft bank Corp. (9984.TO +0.11%) as a part of this Japanese firm’s contract to acquire the 3rd largest wireless carrier in US.
The agreement with US Cellular, which is deemed to be small in the telecommunications industry, is the latest indication of a developing gesture of consolidation in the field of wireless communication.
Dan Hesse. The Executive of Sprint said that the agreement will considerably increase the network capacity of Sprint in vital markets like St. Louis and Chicago. In all, the deal will offer Sprint the licenses to airwaves in part of Indiana, Illinois, Ohio, Michigan, and Missouri in addition to 585,000 customers in all these places, for a cash of $480 million plus some unrevealed liabilities. Sprint will make use of these air wave licenses to increase its coverage in all these regions.
US Cellular told that the deal will permit it to concentrate on markets where it has powerful positions and assist it to restructure its operations. This agreement, which is anticipated to be completed by the mid of upcoming year, is conditional on regulatory review.
The small contract is anticipated to be the foremost of other transactions that could assist Sprint to become equal to other industry leaders like Verizon Wireless and AT&T Inc. (T -3.34%), which are each almost double the size of Sprint and possess much profound pockets.
Hesse has states his wish to have a role in this industry consolidation, but his choices have been restricted by a poor balance sheet with lots of debt and little cash.
Presently, with the new funds from Softbank, Hesse told that the firm can think of strategic choices that were not accessible earlier.
This acquirement steps in after Sprint inked a $20.1 billion contract on October 15 to trade a 70 percent stake in the firm to Softbank. A week later, it got $3.1 billion by trading bonds to a subordinate firm of the Japanese telecom and Internet firm.
In a regulatory filing previously this week, Sprint told that it has plans to discard the Nextel name following the closure of the Softbank deal. It is also not looking forward to performing any lay-offs due to the Softbank contract.
Oil Declines Pending U.S Rig Count; Concerns Over High Global Supply
Oil prices declined on Friday, with U.S. crude down 3%, as investors and traders waited anxiously to see if the U.S. oil rig count will fall even more while OPEC members indicated they would do little to cut output. Declining share prices on Wall Street, which have given guidance to oil recently, also pressured crude futures, addition with reduced political turmoil in the Middle East from United States-Russia discussions on Syria. The dollar bounced to contain oil and additional commodities, following Thursday’s decision by the Fed to keep U.S interest rates unchanged pushed the currency to a 21 day low earlier.
This directed attention largely on oil services firm Baker Hughe’s weekly United States oil rigs report set at 1:00p.m EDT. U.S oil drillers have slashed rigs over the last two weeks, a signal that renewed price drops since July possibly be slowing some from returning to the well pad in large way. “With U.S. output shifts still very much under the microscope, today’s oil rig counts could be a key determinant as to how the complex finishes this week,” said Jim Ritterbusch, analyst at Ritterbusch & Associates. “We expect another decline but one downsized from recent double digit decreases,” he stated. U.S crude futures CLcl fell $1.20, or 2.6%, at $45.70 per barrel.
Next, OPEC member Kuwait stated it would take time for the oil markets to correct itself, representing the group would still defend market share regardless of production cuts to boost prices. Additional OPEC sources stated they project oil will increase a maximum $5 a barrel annually to reach $80 by the year 2020. Iran’s deputy oil minister repeated Iran’s plans to get back its oil production share once nuclear-related sanctions are gone against Tehran, enhancing that new oil contracts would be released in coming weeks. Russia was the only main producer to state on Friday it was probably going to cut production at below $40 a barrel.
Illegal Marijuana: Is That Still A Thing?
Marijuana has finally been made legal and will continue to be made legal over the next couple of years throughout the country. However, there is still a need for marijuana to be sold through the black market. Why? Because of taxes.Regulators have made it near impossible for legal markets get out of restriction. Because of this, while cannabis is allowed in certain areas, drug lords and street dealers have been doing exceptionally well.
A main concern is the banking limits put upon cannabis markets. Dealings have been approved by the government, but still are a threat to the industry because no definitive law has been amended to the books. Lawmakers in Washington D.C. recently added a 37 percent excise tax and restricted the number of retail locations. This put the legal market in a state of non competitiveness with the underground trade. Lawmakers are going to have to levy taxes and release oppressing rules if they seek to stop illegal drug trading.
Find out which companies are good marijuana stocks to buy, here.
Marijuana Stocks Are The Highlight Of MarijuanaStocks.com Late Night Analysis
Within the capital markets public companies keep sprouting from, it seems, out of nowhere to try and carve out their own green footprint. Cannabis stocks, as volatile as they may be, continue to captivate investors looking to grab their own piece of a brand new industry, the same way their parents did ten plus years ago with “DotCom.” Dot Bong seems to be the millennials’ turn at finding the next Ebay or Amazon. Think about it, if you could have invested in alcohol just as prohibition was ending, would you (assuming that there was an opportunity to purchase shares of a publicly traded alcohol company)? I will be presumptuous and say “yes”f or you; and that’s exactly what’s happening. Marijuana is the newest “sin” sector in the public markets, joining the likes of big tobacco, Alcohol, and Gaming industry. When the discussion about marijuana stocks comes about, where do you stand? Do you find yourself in the same mindset of at least 7 high net worth investment funds taking the leap into buying cannabis stocks or are you still watching from the sidelines?