Leap Wireless hits new low on results, downgrades
8/7/12 9:48 AM ET (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Leap Wireless International Inc. saw its shares slide more than 18% to $4.50 -- a record low -- after the pre-paid wireless carrier reported disappointing results for the second quarter driven by a net decline in subscribers. The stock was downgraded by Robert W. Baird and Hudson Square Research following the results. Baird analyst William Power wrote that even though the company said it is evaluating all options, "given the challenging industry backdrop, continued free cash flow losses, a levered balance sheet, and a spectrum value that likely won't cover the debt, we are unconvinced that a buyer will step in." He cut his rating to underperform.