Leap Wireless (NASDAQ:LEAP) has demonstrated its extreme sensitivity to catalysts over the past few weeks. The stock price has rolled up and down dramatically as different analysts offer different perspectives on how valuable they believe are the company’s spectrum holdings.
On December 10, after the stock fell 10 percent in 3 days, an analyst at Guggenheim Securities suggested that there’s a high chance MetroPCS (NYSE:PCS) or T-Mobile USA would bid for Leap after the two companies completed their merger. The call was backed by comments from T-Mobile CEO John Legere, who said that a transaction with Leap would make a lot of sense, given its spectrum assets and synergies.
The stock climbed 12.2 percent in 2 days as a result, a respectable bump for any analyst call. The analyst at Guggenheim raised his price target from $7 to $8.50, estimating that a buyout could run as high as $10 per share.
But the stock has fallen off the other side of the speculation mountain over the past five trading days…