Mike,
I like your comparison of PCS and AOL. I too think PCS is going to eat a lot of the pie. I don't plan on buying any stock, but if I had the cash, I'd buy the whole sector. Everyone is going to win, but some will do better than others.
At some point, people are going to ask, why is NXTL adding 375K a qtr while PCS is adding 800K+? At what point do investors become nervous about price competition and declining margins?
PCS has been everywhere (ads) the last few weeks.
I agree with NXTL carving out their niche in the market. But I'm hoping they don't fail to at least attempt to grab some of the white-collar market that PCS is reaching. Had I not owned NXTL stock and saw the deal PCS is offering today, it would be damn tempting.
When is NXTL going to have to lower prices to compete?
Of course, Arnie will point out that this game is not about scoring points, but about winning. The bottom line is the bottom line. Making money. Let's compare PCS' net vs NXTL over time. |
