Arnie or anyone else, something has been bothering me. Maybe you folks have a different spin on it.
Craig McCaw and his family(including Wendy) own about 92 million shares of NXTL. In the recent 8K, McCaw has pretty much committed to exercise all the exercisable options he and his family own to the tune of $420 million or about 28 million more shares. The options are exercisable at any time prior to 7/28/98 at an average price of $17. So when the smoke clears on the exercise of these options McCaw and his family will own over a third of Nextel.
Ok, all that said, why does Craig McCaw buy in the market a cheesy 50,000 shares @ $23? He has many other fish to fry such as Nextlink, the satallite thing, other private communication ventures in which he can invest dough. Why does he make such a small investment at the market in a company which he already owns such a large part at a basis which is in the mid-teens?
I know the obvious answer is he thinks the price of Nextel is a bargain. But even if the stock triples in the next two years, the amount made off the 50k shares is nickel/dime to McCaw. Why didn't he buy more, if that is his plan? Could this purchase be a quick short term turn for McCaw?
Arnie, I to am also interested in your thoughts on what has been going on with the stock over the last couple of days. Accumulation seems to be going on by some big players. Why the narrow range? Did you see that the number of trades yesterday on 5 million plus shares was only a little over 1200?
Any thoughts would be appreciated.
Noted that Al thinks NXTL is range bound. Guess that is a pretty good sign that NXTL is going up. Ha Ha.
Mark |
