PCStel,
Excellent analysis. However, let me add a few negative points, ok?
My first comment is regarding the selling of spectrum, for LWIN that is an extraordinary event, i.e. they will not continue to do that, therefore, the selling of spectrum should not be included in any analysis.
While I do commend you for picking up on the "roaming" business and excluding that "part" from revenue, one must be able to place a value on their service revenues due to subscribers and their service revenues due to "roaming". Then, with those two valuations, compare PCSA (service) to LWIN. Additionally, within the valuation of PCSA(service) I would also include equipment sales. Therefore, that would be the "best" apples to apples comparison we could get.
On a percentage basis, PCSA(service+equipment) is 73.9% of revenues and PCSA(roaming) is 26.1%.
Ah, let me just cut to the chase. I like LWIN, but disagree with your comparisons, ok? Look @ PCSA's balance sheet. This is what I see:
Total Assets: 1.43B
However, that figure includes "intangible" assets, therefore, exclude that therefore, Total TANGIBLE Assets:
561.744M
Ok, now look @ their liablities...
Total Liabilities: 757.788M
Of the 757.788M in total liabilities, they have 571.792 in LT Liabilities (Debt + Other Liabilities) up from ~266M from last year. That is about a 300M increase. My question....
When does this debt become due? Will PCSA be able to "float" more debt in the fixed income market...
PCStel, when LWIN announces their FY earnings, lets do an "apples to apples" comparison between LWIN and PCSA.
Deal? |
