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Technology Stocks : NEXTEL

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To: Tavros who wrote (8160)11/3/1998 12:56:00 PM
From: Ken Benes  Read Replies (1) of 10227
 
If financing is becoming more readily available at lower rates for leveraged companies, this is good news for nextel for two reasons. It indicates a reduction in the possibility of a recession, which would reduce nextels customer base, and secondly it allows for the continuation of the network build out.
What is not clear, how much has the worlds environment changed in two weeks. The markets are euphoric over the reduction of interest rates throughout the world and it is reflected in the markets. However, commodity prices continue to say something else. It may take several quarters for the resolution to develop. While we wait, stocks will rise to an intermediate base. Should the speculative froth return and valuations continue to rise without fundamental support, the downside could be more severe.

Ken
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