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

To: Rob S. who wrote (2441)	12/22/1997 9:32:00 AM
From: Jan Elaine Page	Read Replies (1) \| Respond to of 2806

Good morning Joe and SI participants....Joe, were you in Atlanta at the Exec. Tour?....If you were, you saw hubby and I on stage, also back stage with KT and Presidential Directors. For those SI who are still confused about the stock price and the analyst mumbo-jumbo, here is an easy explanation: KT had a choice to make during October, November & December 1997. 1. He could horde the company profits and keep the stockholders happy, or 2. He could take that money, use it to get more customers and pay the Reps TRIPLE fast start $$$$$. Guess what he did? That's right. He did what Wall Street hates. He temporarily turned his back on the stockholders and raided the company treasury to PAY US MORE MONEY!...He gave us a raise!...And if you know anything about how our economic system works, you understand that Wall Street types hat raises...except for themselves!!! With Triple Fast $$$ in full swing, and because KT is paying us through the nose to gather customers, Excel's marketing costs are higher than normal. Because it is costing KT more money to get each new customer, the amount of money left over the the stockholders to drool over is less than what they expected. That has driven the price of the stock down. Wall Street is famous for not seeing the obvious because it can't see past the next 5 minutes...THEY WANT IMMEDIATE RESULTS NOW!...Not next week or next money. What Wall Street hasn't figured out yet is that once KT pays to get his new customers (he pays up front) those same customers will keep paying Excel again and again, for months and years. KT will soon be finished paying to get those customers, but those customers will continue to pay Excel for our services, over and over again, into the distant future. He is paying now to make huge profits later. So, don't kid yourself: 1. Excel is still making a handsome profit. 2. Excel is still adding new customers like crazy. 3. And, the Reps are enjoying a BONANZA!...(at the expense of the stockholders). Bottom line: Unlike 99% of traditional companies out there where the Chairman and CEO is beholden to serve the stockholders and where employees, suppliers and customers take it on the chin to improve "earnings per share," KT is rewriting the book on how business works. He has in effect, committed the mortal sin...He has told Wall Street that if given a choice, he will take his lumps and see Excel's earnings dip a little, so he can instead pay the Reps higher bonuses and keep long distance rates low. If anything, this recent stock tumble proves KT's priorities, i.e., he is committed to the Reps in the field. KT has told the world...Forget the SHORT TERM PROFITS--he is going for the LONG TERM PROFITS by investing the company's money in its network of Representatives, who in turn, will build for Excel the most loyal and profitable base of customers in the telecommunications industry. He has told the Reps before, "YOU HAVE CUSTOMERS, I HAVE CASH--I'LL PAY YOU CASH FOR CUSTOMERS. YOU BUILD THE FIRE, AND I'LL POUR THE GASOLINE ON IT." As stockholders, we have been able to take advantage of the dips, but are positioned for the long haul. Happy holidays to all!...