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Dear Mr. Berko:

Dear T.P.:

I think a 1,000-share purchase of Sprint Nextel Corp. (S-$2.49) could be a classy two- to three-year speculation. In fact, I think in the coming three to five years, Sprint could be a $10 to $12 stock. And yes, Sprint was hemorrhaging red ink and losing customers faster than an elm loses leaves in fall.

Sprint’s problem was former CEO Gary Forsee, an engineer who couldn’t manage a two-car funeral. He believed that “management flexibility” was a precursor to management failure. Forsee was a loser, and the proof was the mess he created in 2005 when Nextel was merged into Sprint.

That all changed in 2008 when Dan Hesse became Sprint’s new CEO. This is the guy who will manage Sprint back to health, which he can do because he’s everything that Forsee was not.

Sprint will probably lose 45 cents a share for 2008. Free cash flow will tumble, and revenues and operating margins have fallen more than 10 percent. The company should fare much better in 2009 – but on lower revenues. Hesse has sharply curtailed operating costs, reduced capital spending and cut redundant administrative staff.

Meanwhile, Sprint recently closed its long-awaited merger with Clearwire Corp., which is building an advanced, fourth-generation wireless network across the United States. Customer service, which was an oxymoron under Forsee, has emerged from the Dark Ages. The Sprint network, according to J.D. Power, is the fastest and most dependable in the country. In a recent data-speed test, Sprint crushed competitors AT&T and Verizon. What’s more, Sprint’s family plans can save AT&T and Verizon users between $20 and $70 a month.

Hesse’s folksy TV ads are working and could persuade AT&T and Verizon users (both companies have become too comfortable in their britches) to switch to Sprint. Value Line thinks Sprint can earn $1.50 to $1.70 a share in the coming three to four years, and that revenues will move up some 20 percent. David Reimer at Value Line thinks Sprint will trade between $13 and $20 a share in the next few years.

Because I’m nearly deaf as dendrite, I understand your cellphone sound problem.

I lack the technical background to explain the reasons, but suffice it to say that the sound quality in Europe is clearer and better than that in the United States by orders of magnitude. I can attest to that because I’ve spent lots of months in Europe and Asia.

Perhaps if you wrote Hesse, he might be able to answer your questions. He might also be able to recommend a Sprint phone with clear sound. If he does, please let me know, because I would switch to Sprint faster than a duck jumps on a June bug.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. © Copley News Service