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

To: Kevin F. Spalding who wrote (4975)	3/4/1998 1:13:00 PM
From: Arnie Doolittle	Read Replies (1) \| Respond to of 10227

Kevin, my opinion has not changed re positive operating cash flow: I expect operating cash flow breakeven at the end of the 2nd quarter. That is, the second quarter will show negative but, the truth be known, sometime near the end of June, NXTL will turn the corner. Here's the under reported story on NXTL: This is going to be a GREAT year for Nextel, both the company and the stock. Lots of heavyweight folks "know" this but few are willing to go out on a public limb. As a lightweight, I'm not so shy. Since no one knows me from Adam, my views are minimalized at best, ignored at worst. That's a plus because it means there's still time to buy the stock. Based on fundos and technical patterns in NXTL's chart which I have previously discussed, I expect NXTL to touch 55 this year, then pulling back much as it did last year when it touched 32. 1999? The sky's the limit because we'll see the stock going where it hasn't gone before. Don't be surprised if the stock splits near 1999's end. With a current market cap in excess of $7 billion, NXTL has LOTS of room for growth. Imagine this stock with $5 in earnings and you'll see what I mean. I believe we'll see $5 within four years so the question is how much would you pay today for that kind of earning power four years hence? Put a 30 pe on that and you've got $150 a share in four years. Discount that at 25% and what do you get? $47. And if it takes five years? $36. If I'm right, $30 is a bargain and, at today's prices, an investor would earn 40% or so compounded annually. And what if the pe is higher than 30? Whoa, the air is getting a bit thin and I'm getting dizzy. Now you see why I'm so excited about NXTL. Arnie