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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (1229)	2/3/2002 6:59:51 AM
From: Paul Smith	Read Replies (1) \| Respond to of 2737

"Once you subtract the roaming expenses paid to SprintPCS its adjusted ARPU is only $42..." The difference between $60 and $42 ARPU @ PCSA is not EXPENSES PAID TO SPRINT but rather revenue coming from Sprint,...it is roaming revenue to AirGate and roaming expense to Sprint. Leap has better assets than AirGate but the market seems to be more impressed by AirGate's affiliation with deep-pocketed Sprint (less risk of failure?) and must be assuming (incorrectly?) that AirGate will have better cash flow returns, in part due to roaming revenue from Sprint. My bet would be on Leap. We'll have to wait to see how it plays out. As for Michigan, what surprises me is, if the system is so close to launch, why don't we see more Michigan job postings on the Leap web site? The lack of hiring in Michigan makes me think the launch is not a 1Q02 event. Am I missing something with that conclusion?

To: pcstel who wrote (1229)	2/3/2002 9:13:20 AM
From: Dave	Read Replies (2) \| Respond to of 2737

PCStel, Excellent analysis. However, let me add a few negative points, ok? My first comment is regarding the selling of spectrum, for LWIN that is an extraordinary event, i.e. they will not continue to do that, therefore, the selling of spectrum should not be included in any analysis. While I do commend you for picking up on the "roaming" business and excluding that "part" from revenue, one must be able to place a value on their service revenues due to subscribers and their service revenues due to "roaming". Then, with those two valuations, compare PCSA (service) to LWIN. Additionally, within the valuation of PCSA(service) I would also include equipment sales. Therefore, that would be the "best" apples to apples comparison we could get. On a percentage basis, PCSA(service+equipment) is 73.9% of revenues and PCSA(roaming) is 26.1%. Ah, let me just cut to the chase. I like LWIN, but disagree with your comparisons, ok? Look @ PCSA's balance sheet. This is what I see: Total Assets: 1.43B However, that figure includes "intangible" assets, therefore, exclude that therefore, Total TANGIBLE Assets: 561.744M Ok, now look @ their liablities... Total Liabilities: 757.788M Of the 757.788M in total liabilities, they have 571.792 in LT Liabilities (Debt + Other Liabilities) up from ~266M from last year. That is about a 300M increase. My question.... When does this debt become due? Will PCSA be able to "float" more debt in the fixed income market... PCStel, when LWIN announces their FY earnings, lets do an "apples to apples" comparison between LWIN and PCSA. Deal?