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Sprint Nextel Corporation (NYSE: S) will likely announce at 12:15 today that it will market a new Palm Inc (NASDAQ: PALM) smartphone. It certainly does not carry the same buzz as the Apple Inc. (NASDAQ: AAPL) iPhone-AT&T Inc (NYSE: T) announcement.As a reminder, Sprint never caught on to the importance of Motorola Inc's (NYSE: MOT) Razr, only beginning to market the slim-downed phone after the fad had run its course.
Yesterday, Goldman Sachs downgraded Sprint Nextel shares to Neutral from Buy, citing the company's ongoing struggles to turnaround its business.
There was nothing pretty about the downgrade "The near-term trajectory appears more challenging. Visibility into improvement and tangible milestones for investors to use as benchmarks are also missing. While the company has a great set of assets and operates as a near pure-play into secular growth of the U.S. wireless end market, we cannot recommend buying the stock at this point," the report says.
In other words, good industry, bad management. While Sprint did show some beginning signs of a turnaround earlier in the year, it has all since faded.
Also, the much anticipated partnership with the cable companies to be their wireless provider appears not to be getting much momentum. Actually, Comcast Corporation (NASDAQ: CMCSA) is looking around at buying up its own wireless spectrum.
It will be worth listening to the lunch time conference call to see if there is a sign of meaningful innovation from either Sprint or Palm. At some point Elevation Partners, Palm's new large shareholder, will have some influence on the company. However, do not expect much from either company today.
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