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To: Bubba (3346 )
From: Bubba Friday, Nov 28 1997 11:40AM EST
Reply # of 3375
I have read some of the street research since the Q3 report.
Here is a very brief synopsis.
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Bub, the comment about the increase in sales from the indirect channel
is excellent news. I see this indirect channel as growing MUCH faster
that the direct sales force and perhaps being responsible for 50% of
the adds in 4th quarter. Agents work on commission and therefore are
ideal for attacking the lower end of the market, 3-20 subscribers in
a company. I have been watching the ads in the LA Times and almost
every week, a Nextel Authorized Agent is advertising for salespeople or sales managers. TIC Enterprises, NextWireless, Digicom Wireless, and Radiowave Communications (which also acts as an authorized repair
unit for Motorola) are the names I have seen so far.
One question though. Why was capital expense double what was expected in the 3rd Quarter?
Thanks
George
(from your previous post)
JP Morgan - Buy rating. YE '98 target $40. Q4 subs - 325,000. Same for
Q1 '98. Liked "cost of service" falling. Also liked cost of adds at
about $490. Below their estimate of about $540. Est Q4 cost of adds
$475. Noted indirect channels are 40% of sales at this point, up from
35%. Apparantly a big factor of lower cost of adds. Several other firms
commented on this. |
