<<The three strikes I have against NXTL are (1)the debt which you talk about. (2) the big number of stores that serve towns in my neck of the woods (3)how their cell phones cant pick up jack out here in the boom docks.
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1) They are addressing their debt. Nobody said they had to buy back all those convertibles and preferred stock...they did it because it lowers their debt and saves them BILLIONS, however, if they were not confident moving forward, or didnt have the $$'s to retire some debt, they would not have done so....the simple reason they did, is very telling to me.
2)The big numbers of stores in your town......not sure what you mean by that...positive or negative?? Bottom line is they are adding subscribers faster then anybody else and their churn rate is very low....they get their customers, and keep their customers......I have personally done my own opinion polls with people that use nextel.....in almost every instance people tell me they used up to 2 or 3 and sometimes 4, different services, with different companies, before finally deciding to go with nextel, and now that they are on nextel, they say they love it and have no plans to switch.....amazing the number of people that have told me that.
3) Phones not picking up jack while in the boonies. Well, I dont know where you live, but here in the southeast, NEXTEL does wonderfully well "in the boonies" My wife is an avid Rock Climber and Mountain Biker....we are both very much into the outdoors, camping and etc.....heck, we would live in a tent in the woods, if we could <ggg>....I use one service, which I will not name, but it is not nextel....my wife uses another service, different from mine, and again, not nextel ( for business purposes......and whats ironic is in my business, I have many latge accounts....I have been watching as these folks slowly, but surely migrate to nextel....I was asked by several of my accounts " why havent you switched to nextel yet?...My wifes company is huge.....worldwide....they signed a 3 year deal with a company they are very unhappy with...as soon as the deal expires, the entire company is switching to nextel ).......anyway, we often find ourselves in the middle of nowhere, on top of a rock, or out in the boonies....and my phone wont do squat, my wifes phone wont do squat, but this freind of ours and his wife, who are on nextel, have crystal clear reception both via direct connect, and/or while making or receiving an actual phone call....sometimes it is funny as heck as we will be sitting there, and we'll hear a beep and next thig you know your having a conversation with somebody 300 miles away, via direct connect, and it sounds as though the person is right smack next to you.....no cutting out...none of the crap I get with my phone, in which I hear about 2 of every 3 words no matter where I seem to be......so, at least in my neck of the woods, nextel has far outperformed two of the largest telcom big boys on the block........in any event..the company is exceuting nicely and I like that....but market and world conditions can certainly take her down some.....or she can run a little.....too tough to tell in this market......she could go to $15 as easily as she could go to $2, and either is a distinct possibility in this crazy market......I do think that earnings report and raised guidance caught the attention of some big boys however....personally, I think their is plenty of big money that wants nextel in their fund or personal holdings or whatever......this big money liked the earnings report and likelyhood that nextel will survive and prosper and possibly end up as the dominant player....and those folks will be buying nextel on the dips.....The earnings call, vislibilty...all moves by the company have been great so far....if market/world conditions cause nextel to fall, you can bet their is some big money waiting to pounce and add this baby...JMHO, and always do your own DD....... |
