Leap Wireless International (LEAP)

Add a New Bears Reason Company: Leap Wireless International (LEAP) Current price: Headline: (100 character max) Analysis: Cancel 50% agree 6 votes edit Leap is full of debt. Top Contributor: Andrew Liyana | Created when NASDAQ:LEAP was $52.80 | Edit | History Leap carries a signficant amount of debt. The company went bankrupt in 2003, and if its expansion into new markets is not as fruitful as the company hopes, it could see pressure again. (100 character max) Cancel 40% agree 5 votes edit Leap cannot compete with the large telecom giants. Top Contributor: Andrew Liyana | Created when NASDAQ:LEAP was $52.80 | Edit | History Leap only has 1.7% of the wireless communication market. Verizon, AT&T, and Sprint Nextel form 72% of the market. With such a greater presence, these three firms can apply pressure on Leap Wireless to cut prices and use their cash flows to move into Leap's niche of minorities and youths. However, if larger firms launch new rate plans to compete with Leap Wireless, they will likely suffer a cannibalization effect as existing customers move from higher priced offerings. Any incremental reveunes related to promotional offerings would have to offset migrations. (100 character max) Cancel 16% agree 6 votes edit Leap's revenue could weaken with worsening economic conditions. Top Contributor: Andrew Liyana | Created when NASDAQ:LEAP was $52.80 | Edit | History The majority of Leap's customers make less than $35,000. With rising gas prices and subprime payments, Leap's customers may be forced to end their cellular service. (100 character max) Cancel

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