Nextel????? Message Board

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Technology Stocks : Nextel?????

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To: Mike 2.0 who wrote (2)	8/21/1996 7:56:00 PM
From: Mo Chips	of 48

This is a company that has been spending big... The question is.. Wisely? CALL has built a large nation wide footprint at the expense of quality service. Many people see the value based on the number of potential customers (POPs). While they may have 100+ million pops, so what if the service is only good enough for dispatch. I agree with whoever wrote that McCaw is only building this up to sell it. IMO, CALL's value is basically its frequency spectrum. McCaw saw a cheap way to buy a limited resource, which was also the idea of the founders. To make this a more valuable company, CALL's management's objective has to be to start generating more revenue per user. Right now selling dispatch ain't gonna pay the bills. I think that the current revenue per customer is around $35 per month. At this rate, with over $2 billion in debt at say 12%, it will take a minimum of 575,000 customers - just to pay the interest! Maybe this is why its stock price to book value ratio is 1.15 mo

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