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Technology Stocks : APCS - Alamosa PCS

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To: westpacific who wrote ()2/9/2000 7:34:00 AM
From: Labrador  Read Replies (2) of 28
 
I was looking over the prospectus for APCS, and not that they will have the exclusive area with approx. 8.4 million residents. So if you assume that 1/3rd are kids and those who cannot afford another phone -- that leaves about 5 million potential subscribers. If 10% subscribe (is that low?) and have a monthly phone bill of say $30, that means revenue will be 500,000 x 30 x 12 months = 180M. Is this enough to support the current share price? I believe that they have about 60M shares outstanding. One must obviously deduct the amount due to sprint, service the debt, pay for infrastructure, etc.

What am I missing here? Surely there is more potential here -- since it came out with an offering price of $17. I've not seen any projections, but I am sure that those who bought in the IPO, INCLUDING a fair number of those who were current shareholders, must be seeing what I am obviously overlooking here.
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