First, I have never claimed to have an in-depth knowledge of Nextel. That is why I came here looking for feedback. I only follow Nextel to help me understand the competitive environment that other companies I have invested in operate in.
My appearance on this thread was spurred by an EPS estimate for 12/2000 by PaineWebber that is wildly different from the published consensus estimates for the same period. You have decided to dredge up a misstatement I made in the middle of July, erroneously referring to Nextel's negative profit as negative cash-flow. I am sorry for that slip. It certainly wasn't intentional and in no way do I mean to unreasonably misstate Nextel's prospects for becoming a profitable company. However, based upon what I do know about the cellular business, technology advancements, spectrum issues and capacity issues, cost of new infrastructure and other issues in this rapidly changing industry, I do have serious doubts about Nextel's ability to turn a profit that could justify Nextel's current market valuation.
By the way, I do not have a lack of respect for Nextel's management. I think they have done an amazing job given what they have to work with and I think the current share price is a reflection of management's excellence in maximizing shareholder value. Unfortunately, even the best management cannot hold prices up forever unless the business model continues to make sense looking forward.
The figures shown in the analyst report are cash flow per share
That is an interesting way to report cash flow per share. I always assumed EPS meant earnings per share. Are you able to explain why Paine Webber is using EPS to refer to cash flow per share? I am still baffled.
Bux
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