Mr. Big. Useing this reply to you, in order to get a point across.
Went to lunch today with a large business client of mine. He manufactures and sells all over the world. A large retail chain is going chap. 11 on him, he is owed 103,000. In my clients words it's ok to go chap 11, but he gave the CEO of this business, 130 stores in the US, a piece of his mind. This is it.......
"A smart business man like you should know that rapid expansion leads to serious cash flow problems, which, tends to stifle growth and hurts lots of business people down the line. One foot has to go before the other in order to get anywhere"
As his accountant, I just listened to my client merely quoting my words, which I told him many year ago. What does this have to do with Nextel, you ask?
Nextel.....rapid growth, inability to get all the tech employees they need, issueing junk bonds, faltering in the back office re: collections and bad debts, system down on west coast. On and on.
How does this affect the stock. The stock goes up 1/4 in a great market, then falls 1 point because the others corrected.
Where's Bubba. He got tired of floundering. Hate to say it, my opinion: the stock ain't goin to 32 anytime soon. We going to practice hovering for awhile, rise slightly over a two week period, fall deep, then rise slightly again over a two week period. Meanwhile, the stock is going to be volnerable to every glitch in the world. No chart needed to see this, history proved it.
Why the negativity. I'm not negative, but I'm not stupid either. There are hundreds of companies out there that are established, have assets, have cash flow, have profits, are strong, who's stock is selling in the same price range. Start up companies are flash, they attract attention, everyone wants to get rich, get in at the bottom. Rapid expansion my not be good, hope we make our big bucks before it catches up.
Replys would be entertaining, and appreciated. Helpful if other similar companies were used as examples of how I may be wrong.
Regards from
Uncle Al, going away for a long weekend, Nextel please don't dump while I'm gone. |
