12/17/99 Reuters Eng. News Serv. 11:32:00
Reuters English News Service
C) Reuters Limited 1999.
Friday, December 17, 1999
USA: RESEARCH ALERT-buy Nextel on weakness - Soundview.
NEW YORK, Dec 17 (Reuters) - SoundView Technlogy Group said on Friday
investors should buy shares of Nextel Communications Inc. on weakness.
- said Nextel's quarter appears "on track." Said it expects Nextel to add
425,000 net new subscribers, which is above the range of 390,000 to 410,000
new subscribers expected by other Wall Street analysts.
- said Nextel's average monthly revenue per subscriber should remain strong
and the highest in the industry.
- said believes the company remains a takeover candidate by a foreign
telecommunications company.
- said Nextel's stock was affected by two legal proceedings on Thursday.
- said a Washington D.C. court approved a modified antitrust decree ruling in
favour of Nextel, allowing the company to buy additional licenses in the
900MHtz band in the top 25 markets. Said this is only a "slight positive"
since these licenses come in "slivers, not swatches" geographically.
- said NextWave's bankruptcy court proceeding in New York may also affect
Nextel, but there are too many unanswered questions to judge the impact on
mobile wireless or fixed-wireless carriers. NextWave on Thursday got $1.6
billion from several high-profile investors. SoundView speculated that Leap
Wireless Inc. also may get involved with NextWave.
- said NextWave may deploy Qualcomm Inc.'s new high data rate technology and
go after the "last-mile" traffic and compete in the fixed local loop market.
That move would have no impact on the mobile wireless carriers.
- shares of lost 1-5/8 to 91-5/16 on Nasdaq.
(( Jessica Hall, New York newsroom 212-859-1729)). |
