NEXTEL Message Board - Msg: 17737041

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Technology Stocks : NEXTEL

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To: im a survivor who wrote (9867)	7/15/2002 10:16:56 AM
From: Rono	Read Replies (2) of 10227

I don't think this will actually happen, but it sure would send a few shockwaves through some of the hedge funds who have had there way for some time now. I think much of the volume was the hedge funds covering their short sales, just in case Nextel was planning an earnings day sneak attack. ---- Sanford C. Bernstein & Co. analyst Alex Trofimoff said some of today's gains may be because of speculation that Nextel will repurchase some bonds or preferred stock to reduce future interest payments. Nextel had $14 billion in debt as of March. ``It makes a lot of sense for them to do that,'' Trofimoff said. ``You can help your equity holders gain a lot of confidence in your business by paying some of that debt,'' when the business is generating more cash than forecast. Trofimoff said the company might spend $500 million to $700 million to buy back notes and preferred shares, some of which are trading at 55 cents on the dollar. He rates Nextel ``outperform'' and doesn't own the shares. Still, he said Nextel must ensure that it retains enough cash to cover expenses should business slow in the next nine to 12 months. ``Nextel does have to careful,'' Trofimoff said. ``What they don't want to do is remove their cash flexibility.''

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