Small Cap Stocks/Sprint

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Question
Hello, how are you doing? I have a question about a stock I own. The stock is Sprint. I bought this stock and since I have owned it, its share price has risen. I could sell and take a profit but they are getting ready to be bought out by another company. When a company is bought out how does that effect the stock I now have in the company? One other question, when you are looking for stocks to buy what are the things you look for. I have used stock screeners but donít know the best things to look for that give the companyís stock price a better chance to go higher in the future.

Thank you for all of your help.

Answer
Thanks for the questions, Torrey.  On Sprint, this is something I don't follow that closely, but it's not a complete merger.  Softbank will be acquiring the majority, but not all.  Sprint will remain a public company with a strong parent. So, it's not being "bought out".  I don't have a view on how it might perform in the future.

Stock screeners are a tool for identifying stocks, but they are just a starting point.  I look at all sorts of things, like the quality of management, the strength of the balance sheet, the competitive landscape, the growth potential of the markets the company serves and the valuation.  I hope that this is helpful.

Small Cap Stocks

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Alan Brochstein, CFA

Expertise

I can answer all types of questions about stocks , especially those that have a market cap in excess of $100mm.

Experience

I was a portfolio manager/analyst at a firm that invested in companies with market capitalizations primarily between $1 billion and $15 billion from 2000-2006. I currently provide research and consulting to institutional investors and manage the highly successful Invest By Model model portfolios for individuals to replicate in their own accounts (www.investbymodel.com).

Organizations
CFA Institute

Publications
http://seekingalpha.com/author/alan-brochstein http://ab.typepad.com/ http://ab.typepad.com/my_own_analyst http://ab.typepad.com/invest_by_model

Education/Credentials
B.A. in Economics and Math from Northwestern University Chartered Financial Analyst

Past/Present Clients
I consult to 4 investment management firms that manage from $50mm to several billion dollars.

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