What do you mean by "cash opportunities"? Do you mean cash problems? A year after they went public, they had over $2 billion in assets. That's a whole lot more than MCOM at the same time...
In December of 1993, MCOM had $31 million in assets, $2.9 in liabilities, and no LT Debt. In the last trailing 12 months, the company has $34.8 million in assets, $13.4 million in liabilities, and $45 million in LT Debt. This shows how small and vulvernable a company like MCOM is in a situation like this.
Now, IMO, NXTL is not a good buy either. The company is HEAVILY in debt( to the tune of over $7 billion), has been losing money EVERY year since they went public, and is predicted by analysts to lose $4.57 per share next year. That's a lot of money to be losing and they have strong competition from a lot of companies in the personal communications business. Maybe in a couple of years... we'll see.
I personally believe that personal, portable communications is the way things are heading, but if I was investing in that industry, there are better players than NXTL. Except for the recent run up this month, NXTL has had at best a piss-poor performance in the last several years. Just imagine buying it in the 40's in 1993 & 1994, and watching what the S&P 500 did since that time...
If I was to invest into that industry, I'd lood at the bigger players, say Sprint... they've splitted their business into their PCS business and their traditional business (PCS & FON on the NYSE respectively), with Sprint Corp. retaining 100% control and ownership of Sprint PCS. Or one of the baby bells, like Pac Bell in So Cal (which has its own PCS business)...
Unless further promising, substantial news develop for MCOM, I'm going to be shorting MCOM. See ya around. |
