Al:
Short term, a close below 31 is not good, particularly on an up day for the market. This development mitigates the 35-36 I was looking for.
Looking at the report, two things jump out at you. First, the almost 7 billion in long term debt, and second, the required time to be cash flow positive. I do not believe, this is going to occur the next quarter and it is questionable whether it will occur this year considering the development of the international infrastructure and the unfinished build out domestically. Medium to longer term, this is a great stock that will eventually break its old high. Todays action and reaction to the first quarter report puts into question whether a new high will be reached this year.
I will be watching very closely tomorrow and the subsequent analysts reaction. Again if this stock cannot establish a new trading range above 32, the recent breakout will be considered a failure and we will be able to purchase nextel at a lower price.
Ken |
