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

To: slacker711 who wrote (1831)	3/29/2002 3:03:34 PM
From: Paul Smith	Read Replies (1) \| Respond to of 2737

If Lucent is also the funding behind Metro PCS, PrimeCo, or other copycats, LU may not object to a merger with Leap since they would likely assume (I would) that a combined company with a similar/identical strategy would be stronger than a smaller company. Now, would Harvey want to take Metro or others into the Leap family?

To: slacker711 who wrote (1831)	3/29/2002 3:06:04 PM
From: rharshman	Respond to of 2737

You may be right about missed opportunities. But a company can also get in financial trouble by expanding faster than it has the resources for. If the missed opportunities are really crucial to LWIN's future, there may be constructive ways to take advantage of them, i.e. raise the capital for new ventures. One possibility, and I am not recommending it, might be franchising Cricket in areas Leap cannot self-finance. Another possibility is an equity offering, which seems unlikely now. But remember, it was not too long ago that Leap sold new stock for $88 a share. Who knows what the equity market will value LWIN at a year from now? Perhaps it will be at a level that will make financing expansion with new capital that will include some equity an attractive option. But at current prices, increasing debt leverage in order to grow, an option which is not available right now anyway, might not be a reasonably prudent strategy.