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Technology Stocks : NEXTLINK Communications, Inc.

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To: jethro who wrote (39)9/30/1997 6:18:00 AM
From: Doug (Htfd,CT)   of 265
 
NXLK leads Motley Fool "Heroes" for 9/29 Evening News:

"Facilities-based competitive local exchange carrier NEXTLINK (Nasdaq: NXLK) (N) (S) gained another $2 1/2 to $25 3/4 after rocketing from its IPO price of $17 on Friday. The company, which is 79% controlled by cellular telecom entrepreneur Craig McCaw, is run by former AT&T Wireless executive officers. Based on multiples to trailing operating figures, the company looks horrendously expensive, but year-over-year growth rates on revenues are running well into the 70% plus range. With a cash infusion from the IPO and $400 million in debt, the company is set to expand into the New York and Los Angeles markets, going after enterprise customers with high-bandwidth needs.
If it can reach half the efficiency of WORLDCOM (Nasdaq: WCOM) (N)
(S) by 1998, in terms of gross cash flow to capital employed, then NextLink is selling at 7.5 times 1998 gross cash flow, or about 23% of WorldCom's current valuation."


source: fool.com

Doug (no position in NXLK)
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