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


To: Al Gutkin who wrote (5047)3/8/1998 7:27:00 AM
From: Paul Smith  Read Replies (1) | Respond to of 10227
 
Thanks for the post Al. I am long Nextel (small amount though).
I've been told that ARPUs, and operating cash flow, and disconnect rates are all nice stuff but the real value of compnies is determined by their ability to create "free" cash flow. Arnie might be able to explain this better than I can but free cash flow includes all the cash going in and all the cash going out including construction not just income statement spending. Ideally, you want the company to have more cash coming in than going out. This rarely happens with young companies like Nextel so you need to look to when Nextel will no longer be young and when free cash flow will turn positive. What year is that for Nextel?