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Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: Rono who wrote (9327)	9/7/1999 2:17:00 AM
From: Bux	Read Replies (1) \| Respond to of 10227

I have no idea why Paine Webber chose to report cash flow as EPS. Yes, it seems to fly in the face of convention. As far as Nextel turning a profit, that's not in doubt. Provided no major acquisitions or significant changes in their business plan, I think a profitable 4th quarter in '00 is a strong possibility. The competitive landscape in the wireless arena is intensifying, downward price pressures increasing. I wouldn't be surprised to see a strong slowdown in subscriber growth in the near future (lower prices, better service by other carriers). We'll have to wait and see about a profitable 4th qtr. 2000 but at this point I doubt it. Hopefully a buyout will be arranged before shareholders jump ship. You seem to suggest Nextel is overvalued at current share price while concurrently admitting limited knowledge of the company. Are you aware of the significant market cap differences between Nextel and Sprint (PCS), the only other pure wireless issue? Do you think PCS is overvalued as well? It's difficult to value wireless carriers, traditional models don't apply. What is overvalued? When is the risk/reward ratio attractive? That will be different for everybody. If the economy hiccups, look out below. Certainly, a carrier with a good shot at dominance deserves a higher value than one without. Sprint has CDMA, Nextel has iDEN. Sprint has roaming Nextel doesn't. Sprint has an easy upgrade to 3G, Nextel doesn't. To be fair I will mention Nextel has direct connect, Sprint doesn't. Still any Sprint phone can speed dial any other phone so I'm not sure what the great advantage is. But CDMA has compelling advantages that shouldn't be ignored especially when it comes to data, but also voice. These advantages (capacity, soft-hand-off, voice quality, roaming, path to 3G, market share, handset availability, etc.) will become more pronounced as time progresses (except for voice quality). Maybe wireless subscriber growth will be so rapid that other networks won't be able to expand rapidly enough to handle the volume and Nextel will be able to continue to charge high prices for mediocre service. Perhaps. I wouldn't bet my $$ on it. Whatever Nextel needs to compete in the wireless landscape, rest assured, they'll get it. As an individual investor, that's a frightening assumption. But peace to you, I mean no harm, but to share my vision and to hear about yours. Bux ps. Can anyone explain the Paine Webber mystery?

To: Rono who wrote (9327)	9/8/1999 10:32:00 AM
From: Arnie Doolittle	Read Replies (1) \| Respond to of 10227

"I think a profitable 4th quarter in '00 is a strong possibility." I agree with you. The downstream earnings potential of NXTL is incredible and will support a 3 digit price sooner than most think. "Are you aware of the significant market cap differences between Nextel and Sprint (PCS), the only other pure wireless issue?" Ron, NXTL would have to be over 90 to = PCS's CURRENT market cap. At 90, if WCOM were to come visiting again they'd have to offer 1.2 shares just to = NXTL's $90 per share. Is that a hoot or what? Arnie