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


To: Ed Pittman who wrote (5016)3/6/1998 6:56:00 PM
From: Ken Benes  Read Replies (2) | Respond to of 10227
 
Ed:

Todays action for Nextel was less than inspiring. I believe the market is going to trade in the 26 to 28 range until the add ons are released for the first quarter in April. These numbers are going to be critical for Nextel to break out. If they are 400+ as Arnie thinks, this will answer how nextel is faring with the price competition being offered by competitors.
With the amount of leverage that nxtl has, the company is going to have to demonstrate that they can continue to add significantly to their customer base. From the numbers in the annual report, the ARPU is high indicating that the service offered by nxtl is more important than a low price alternative without direct connect.
Nevertheless, as with any high leveraged stock, an expanding cash flow is critical.

Ken