John: Recent financial moves by Nextel troubles me, as follows:
Nextel's "all of a sudden" junk bond ussue, coupled with the bad debt reserve, copled with the hiring of a management team to get their back office organized, coupled with a previos announcement that a job search firm was hired to find good tech people, tells me there is something wrong.
Possibilities: Cash flow is not as good as expected, expansion is more costly than expected, there will be delays in meeting the financial business plan, the company is not a healthy as it should be. Am I full of crap? Don't think so, my feelings are substantiated by the stock floundering when the rest of the market is breaking new highs.
Quite frankly, I am confused. My gut tells me, forget about Nextel, there are better fish in the ocean, my mind tells me, if Nextel can pull it together it may turn into the good investment that Arnie believes in. The next few days will tell the tail. I'm watching from the sidelines, when the quarter results are announced, the stock could either fall or continue to flounder, however, in any case, it probably won't shoot upward. I forsee an announcement like the past, "Nextel has a record quarter", then the financials show a loss greater than any other quarter.
Nextel has been given lots of leeway because it is in the startup and growth stage, however, in a time when stocks fall 30% because of a pin dropping, we better pay attention to each and every movement.
Regards again from
Al G., I hate to be forced into paying too much attention. |
