Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael G. Potter who wrote (741)	7/3/1999 11:30:00 AM
From: jttmab	Respond to of 10655

Michael, Thanks. it's nice to see a potential short candidate with erratic, perhaps poor service. Looking at the press releases, at the end of May, Arial had about 330,000 customers with a market cap of approx. $939MM or about $2800 per customer. Given that there is consolidation in the sector, as a short position, one might be worried about an acquisition of Arial; for comparison purposes Nextel had around 3 million units (end of 98)with a $14.5 Billion market cap [current] adjusting the units upward 20% for growth, estimated units at 3.6 million or about $4,000 per customer. Later on I'll take a look at: home.snap.com see how the per customer numbers bear out with their competitors. It's hard for me appreciate why the per customer numbers for cellular would be as high as either Arial or Nextel, but if the $4,000 is an "industry average" then it may not be worth taking the risk. Best Regards, Jim