Ken: Do you really think ARPU's has an affect on the stock.
I agree that ARPU's might be part of a valuation method for the company as a whole, not the trading price of the stock. The stock has not appreciated when the quarterly announcements were made. Why? because the announcements are all the same wording. "Nextel has had another record quarter" defined as bigger losses than the previous quarter.
I just got back from Arizona, where I met with my wireless client. He has the system that goes from Lake Havasu, Kingman, Bullhead to Vegas.
Evidently Nextel bid and won some of his occupied channels. From what he said, Nextel overpaid for the channels, has to move him at Nextel's expense to other channels, without any distruption of service. Nextel paid millions for something he paid 30 bucks for. The catch is, Nextel has a limited period of time to do this, or the their rights expire and the money is lost.
Let's summarze this. Pay millions for an option, then pay more to move the existing occupants, then pay more to build out your system. LIke my client says, Nextel doesn't care about his area, sparce population, why buy the channels. As a matter of fact, he ran Nextel out of town once because they couldn't compete with his system, there new stuff is interesting though, and the situation may be different now. (now that they borrowed all that money, use some for subsidy, huh?)
ps. My client lost his ass on Pittencrief stock, when Nextel bought the company the stock took a dive.
Regards from
Al G., out there in the field getting more useless info. |
