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Technology Stocks : NEXTEL

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To: im a survivor who wrote (10025)10/29/2002 3:07:10 PM
From: Arnie Doolittle   of 10227
 
OK, let's see what we have here. NXTL earned 14 cents per share in 3Q02. Multiply that times 4 and you get 56 cents. That puts NXTL's PE at about 18 based on current results. But there's more to consider. One must also add the interest expense saved due to debt retirements. Also 500K adds per quarter translates into $700 million increase in EBITDA which approximates into an additional increase in EPS of 39 cents. And those numbers are conservative. If NXTL doesn't earn $1 a share next year it will be the biggest surprise on Wall Street to anyone who sees what NXTL is doing. The seeds for success have been planted and they're beginning to produce a crop that will move the stock to 20 next year and 30 the year after, if not sooner. It will all be based on earnings and a PE that is fitting for a growth stock. Add a turn in market sentiment and who knows where the stock price might go.
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