Al:
There are two kinds of businesses, candy stores and national corporations. Candy stores do all of the things you have said. I have known many people who went into business and without fail they all did as you stated, they bought their invoices, letter heads, business cards, etc, purchased a cash register, built a facility and loaded up on inventory expecting the public to come rushing in. A sound business plan is something else, did they do demographic studies, did they introduce new technologies, did they in a gestalt manner view the whole picture. To most of these questions, they did not, but they had the requisite paper work required to do business.
When analyzing nextel, we are dealing with a company that has is the creation of McCaw and Motorola. Both are visionaries, and when a putting a business plan together, they look at the horizon and what is going to be out in the near future. McCaw is a proven visionary in the wireless industry and it appears that his vision of the nextel network is becoming reality. Yes we are at the point that logistics have to catch up with the acceptance of the model. Pattons tanks ran low on gas, but he still defeated the enemy. Nextel will overcome these short term problems and the company and shareholders will prosper. My own business has experienced exponential growth that would have been impossible without the nextel units. My experience is the experience of many other business owners that I am acquainted with. We are not limited to one particularly industry, the application of the nextel units is broader than most people think. Nextel is making in roads to the white collar guys, and they love it. They like it when they are local and they like them even more when they travel. The units go with them and they are in contact with the head office for the price of a local call. They get their Email and pages and tell me that they feel as if they never left town.
At some point, nextel will be taken over, the price tag is going to be high, but their is money to be made between now and the summer. The buyout premium in later years will be the bonus prior to moving on to something else.
Al, nextel is not a candy store business, look at it for what it is a very dynamic company, run by some very savy guys with a lot of experience in telecommunications.
Ken |
