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#2: Sprint

Sprint Nextel NYSE:SYTD Performance: +132%

Sprint (NYSE:S) is the third wheel of the U.S. telecom space, behind duopoly AT&T (NYSE:T) and Verizon (NYSE:VZ). But lately the stock has been putting its bigger rivals to shame, at least on a share price basis.

That’s because Sprint has tallied more than a doubler in 2012.

As for why … well, frankly I don’t think it’s responsible to venture a guess. I personally believe that Sprint is not a company to be dealt with based on fundamentals, since it hasn’t turned a profit since 2007 and is projected to bleed cash until fiscal 2014. Furthermore, its single-digit stock price means it’s fodder for high-frequency trading algorithms and can whipsaw the stock around like crazy on no news.

Not trying to scare you, folks, but my two cents is that this is a trick of sentiment and not of strength in the underlying stock. That’s good on the way up — but can be painful on the way down.

Article printed from InvestorPlace Media,

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