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Technology Stocks : NEXTEL

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To: Silicon Trader who wrote (7984)10/15/1998 9:26:00 PM
From: John F. Dowd  Read Replies (1) of 10227
 
This is still a great story and the premier wireless operation in the business market today. I am just afraid they have more imagination than the dufes that analyze them. Bear in mind they haven't even done the consumer trick yet and I am sure ethey will come out with some kind of family thing. Also don't get me wrong buying NXTL at 16 is not a bad thing to do - its just that todays volume speaks to a lengthy recovery unless some real elephants get involved. It also makes me wonder why they can't apply their switch technology to landlines. For example you call into their switch and punch a DTMF code that gets AtoD'd as a group call and voile you have an instant conference call. ATT is trying to do this kind of thing as we chat. In other words it is kind of an instant circle of friends ala the old MCI subscription gimmick.

Sustained growth is definitely what this company has. Doubling one's revenues every year is quite fine and CF is the name of the game in a growing cap. intensive environment. Their is so much depreciation put on the books that it is hard to imagine how you could stay ahead of it as a relatively small and growing company that is trying to outbuild the giants.

Regarding the comment about the lack of phones they are right on. Don't advertise what you can't sell. They could have attempted the the PC trick of preselling the upgrade as they supply the older equip. to capture the customer i.e. Sell the i600 at salvage and upgrade for x$ when available if they want to. The money is made on the air time and an approach like this should have been attempted at any rate.

The only thing wrong with this company is coverage and that will take more $$$$ as they fill in the holes. But i definitely think they will have some new marketing tricks to generat eeven greater yields in the days to come.

JFD
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