John,
I am long NXTL and also short NXTL Dec 25 calls and puts.
Sounds confusing? Let me elaborate: on the expiration day, if the NXTL is above $25, I'll be out with a small profit; if it's below $25, I'll double my position; if it's exactly $25, I'll keep 1/2 position that I have now.
In a word, I am long and on the defensive. I am looking for a rationale to buy/hold/sell/short the stock.
Nextel is definitely not a shell game. It's a roll-the-dice high-risk high-reward game. McCaw is sufficiently diversified and capitalized to play it. Am I?
CDMA appears to be a better technology than TDMA (upon which iDEN is based), but that does not necessarily mean that one would be better of investing in QCOM rather than NXTL (aside from the fact that one is a telecomm equipment manufacturer and the other - a service provider).
The big question is: can the "E" in ESMR successfully compete with PCS? If it can, then SMR (Direct Connect) will give Nextel an edge. If not, the "E" may become a drag on Nextel's SMR business.
PTB |
