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Home | Top News | Sprint Nextel Corp. and the 'Jim Cramer Effect'

Sprint Nextel Corp. and the 'Jim Cramer Effect'

09 May, 2008 05:46:00 Thom Buschman
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Former hedge fund manager and current host of CNBC's “Mad Money” Jim Cramer gets more than his fair share of press – so there is honest hesitation to add to it here – but there seems to be a clear trend of positive mentions of a stock leading to a bump the next day. Even for a $25 billion company like Sprint Nextel Corporation (NYSE: S).

Though certainly Sprint Nextel has been in the news for legitimate business developments – the company is partnering with Clearwire Corporation (NASDAQ: CLWR) on the 'WiMax' network – shares of both companies actually fell after the announcement, and shares of Clearwire continue to fall Friday.

Sprint Nextel, on the other hand, is up more than 6% in early afternoon trading after a mention on “Mad Money” Thursday evening:

I think Deutsche Telekom is going to buy Sprint.  I think you should hold onto Sprint.  I actually did a piece saying, a week ago, we thought Sprint was worthless, with 50 million customers.  Suddenly, we find ourselves thinking, hold it... 50 million customers... If DT wants to do it... They've got a deal with Clearwire...  maybe they can split the company up...  I think that Sprint is okay, but it's speculative... it's speculative.  I don't want anyone thinking this is an AT&T.  This is speculative.

Buying Sprint Nextel may be news to Deutsche Telekom (NYSE: DT), but it seems to have resonated with “Mad Money” viewers.

As of publication, shares of Sprint Nextel Corporation are up 6.35% to $9.55 on New York Stock Exchange trading.
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