Michael,
Thanks. it's nice to see a potential short candidate with erratic, perhaps poor service.
Looking at the press releases, at the end of May, Arial had about 330,000 customers with a market cap of approx. $939MM or about $2800 per customer. Given that there is consolidation in the sector, as a short position, one might be worried about an acquisition of Arial; for comparison purposes Nextel had around 3 million units (end of 98)with a $14.5 Billion market cap [current] adjusting the units upward 20% for growth, estimated units at 3.6 million or about $4,000 per customer. Later on I'll take a look at:
home.snap.com see how the per customer numbers bear out with their competitors.
It's hard for me appreciate why the per customer numbers for cellular would be as high as either Arial or Nextel, but if the $4,000 is an "industry average" then it may not be worth taking the risk.
Best Regards,
Jim |
