NEXTEL Message Board - Msg: 2857071

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : NEXTEL

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bernie Diamond who wrote (3394)	12/2/1997 2:51:00 PM
From: Bubba	Read Replies (1) of 10227

PW analyst comments - these are about third hand, but I think are fairly accurate. ------------------------------------------------------------------------------------------------------------------ Held Q4 sub growth at 340,000 Held Pos Cash Flow to Q3 1998 Sub Growth probably much higher in 1H 1998 1)New "Galaxy" rolls out, (6 oz. phone, most closely related to MicroTac Elite). "Eagle", StarTac type phone looks like Q2 1998. 2) Indirect channels expand - initial trials w/ HD, SPLS & OMX look good and are expanding. These could come on full force as indirect channels significantly increasing 3) Real promotion activity held to Jan 1998 to promote Galaxy, not really doing much promotion in Nov/Dec period. Cash Flow - 1H increased sub growth means Q2 EBITDA positive tougher as cap ex increases. This is a good problem but pushes date to Q3 1998. Increased cap ex estimate from 800mm to 1.0 bil for 1998. Apparently customers want greater coverage. Not sure about this one. Increased coverage probably causes incremental growth, but maybe not as powerful as some other types of cap ex such as new market expansion. Theory is you would get that customer anyway so increased coverage adds some minutes of use but does not cause most people to turn a "not buy" into a "buy". This is all very hard to gauge as you have to have a real feel for the incremental revenues from the different types of cap ex and the associated margins on those revenues. None of it seems negative to me just varying degrees of positive. I continue to think the increased cap ex has some players nervous as it is basically "if you build it they will come" type of bet. All of us in Arnie's Army believe but some others may still chose to wait before enlisting. OVER THE RAMPARTS! Sergeant Bub

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next