From the Street.com...... Steven Shindler, chief financial officer of NextelCommunications (NXTL:Nasdaq), thinks the investors just don't get it. In his presentation, Shindler said investors just don't understand the McClean, Va.-based provider of digital phone and two-way radio service. They don't see the value of the firm's international portfolio, don't understand its purchase of interests in local phone service and just don't get the significance of its massive spending on
infrastructure. Perhaps that is why out of an estimated float of 54 million shares, nearly 20 million shares have been shorted.
"How much is the equity really worth?" asks Mark Morris, vice president at the San Francisco-based Citadel Investment Group. "Until they go cash-flow positive, it's impossible to make that assessment." Citadel doesn't' currently own Nextel stock but Morris says he is considering taking a long position. According to Shindler, the company will go cash-flow positive in next year's second quarter --
U.S. operations will be cash-flow positive by this year's fourth quarter at the latest.
|
