NEXTEL Message Board - Msg: 2764564

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Technology Stocks : NEXTEL

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To: Ed Pittman who wrote (3291)	11/19/1997 8:58:00 AM
From: Bubba	Read Replies (1) of 10227

To all the doubters - Here's why you buy NXTL. In short - ARPU of $70 vs $44 for the industry. Why would anyone pay this kind of premium? In short - Direct Connect Is there enough demand to make $? In short - over 2mm public SMR users and 20mm private SMR users plus other "mobile workforce" in the many millions of users. At 6mm users and a 45% EBITDA margin, (the Morgan Stanley projection) the stock is worth over $100. BTW, Morgan Stanley projects this for 2001. So what are we down to? Guess what. Business 101 You can only charge a premium and make real money long term if you have a valued and differentiated product that is very tough to duplicate. Watch the sub #'s and ARPU. Those are our tea leaves. Here endeth the lesson - Rev. Bubba

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