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

To: Lance Bredvold who wrote (2298)	6/30/2002 1:51:08 PM
From: alburk	Respond to of 2737

I am looking forward to the June qtr conference call. Based upon recent representations by management, the quarter should have little in the way of downside surprises and should show progress with respect to the customer fraud issue. Again, focusing on Q3, and Q3 guidance from the upcoming June qtr conference call, am I missing something? Based upon market reaction, it seems that the market expects LWIN to acknowledge defeat. Management has represented publicly that they are in compliance with all covenants that currently apply. Are recent declines explained by qtr end "Window Dressing" and reshuffling of indices? Hard to believe that as recent as 2 months ago, LWIN has price targets of $30. The fraud issue seems reparable. The Telecom malaise is possibly irrelevant excepting the ramifications for access to capital (obviously significant for LWIN). Other than the customer fraud problem, where has LWIN stumbled.

To: Lance Bredvold who wrote (2298)	6/30/2002 11:48:50 PM
From: pcstel	Respond to of 2737

The venders might wish to obtain assets of the company while they were still relatively valuable, but if the reason for bankruptcy were that there was no reasonable expectation for a profitable return on those assets under LWIN, then what would Lucent, Nortel and Ericy do with them? Lance. A large percentage of the cost to build a Wireless Service Provider is actually building the Fixed Network. Which the Vendors have not only supplied the equipment for this network, but also the manpower to install and interconnect it. Breaking up the Fixed Network would yield "little value" in hardware to the vendors. The Air Interface portions are still state of the art so to speak. But again, the value of these assets on the resale/reconditioned market would not yield monetary figures anywhere near what costs were expended to build a finished network. The value of the spectrum is now 1/10th of what it was. So what you end up with is Lucent/NT/ERICY holding first dibs on reclaiming assets that would yield a fraction of their original costs and collateral values. If the spectrum could still fetch 800 million, then it might be an attraction to take the money and run. But, now the spectrum is worth maybe 125 million. At this point the vendors, are along for the ride! IMO. PCSTEL