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

To: A.L. Reagan who wrote (2393)	7/18/2002 7:53:26 PM
From: Dave	Read Replies (1) \| Respond to of 2737

A.L., The original business model did not work. In order to become profitable, NXTL had to issue equity in order to retire the debt. If you, as a shareholder of a company, like to be diluted, that is fine. Yes, while Nextel did report a pro forma profit, the increase in outstanding shares represents a drag on Nextel's future EPS growth. Do you think that had that happened today's price would be $1.39? No, it would be much lower than a $1.39. In my opinion, this example represents basic economics of Supply and Demand. If Supply increases while demand remains constant (or for the Wireless Sector, demand overall is decreasing for equity), the price will go down until equilibrium exists.

To: A.L. Reagan who wrote (2393)	7/18/2002 11:51:28 PM
From: JGoren	Respond to of 2737

exactly. how management manages the corporate capital structure is an important factor. the stock price will increase with a greater rate of return with debt costing less than the profit percentage, but the reverse occurs when the debt weighs on the company.

To: A.L. Reagan who wrote (2393)	7/19/2002 3:23:11 PM
From: pcstel	Read Replies (1) \| Respond to of 2737

"Let's say for kicks and grins that LWIN had actually issued 20 million add'l shares at the beginning of the year when the stock was selling for $15 ps - and used the $300 mil of proceeds to retire (at that time) around $400 mil of 13% coupon debt." ERICY LU AND NT are dying for cash. Better to buy down the Vendor debt (lower % rate than the coupon debt) at 25 cents on the dollar. 250 million gets you 1 Billion in Vendor Debt! ERICY has a fire sale going on now! However, the solution for the entire industry has to be consolidation. Here is how I would play it. AWE merges with VoiceStream. AWE kills VoiceStreams aggressive Anytime Bucket Plans, and integrates the VoiceStream GSM network into AWE's. Now, you attack the so called "Nationwide Carriers" that do not actually control Nationwide Footprints but, rely on the Nationwide Carriers for roaming services.. Cingular gets cut out of any roaming agreements with AWE and Voicestream. (Cingular No longer nationwide) Same goes for Alltel. You are now left with only 4 Carriers that can offer close to "Nationwide Roaming Services".. Thus allows them to raise prices for their more exclusive services by offering "nationwide plans". They kill Free Long Distance! This increases operating margins and lowers Average MOU's per month. 3 of the remaining 4 nationwide providers have an interest in preserving Long Distance Revenues in the Wireline Market. ATT, Sprint, Verizon. Once PCS launches Push to Chat. Nextel's ARPU and Churn are at risk to PCS. LWIN, Northcoast, Metro, and Qwest get bought out by Cingular and Alltel trying to complete a larger coverage area. PCSTEL