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

To: lowbuy who wrote (5701)	4/16/1998 2:02:00 PM
From: Anthony Wong	Respond to of 10227

RESEARCH ALERT - Nextel subscriber growth up Thursday April 16, 11:40 am Eastern Time NEW YORK, April 16 (Reuters) - TD Securities said Nextel Communications Inc. (NXTL - news) posted better-than-expected first quarter subscriber growth but weaker average per unit revenues. -- said Nextel's subscriber growth of 371,000 net digital additions was 10 percent above TD Securities' forecast. -- said promotional activity contributed to modestly lower-than-expected average revenue per unit of $66, down from the forecast of $68. Said it expects average revenue to trend down slighlty over the rest of the year due to the ongoing nature of many of these promotions. -- said domestic operating cash flow losses of $95 million exceeded the forecast of $80 million. The shortfall was due to the larger subscriber gains, as well as higher-than-expected customer acquisition costs. -- said domestic capital spending of $490 million exceeded the forecast of $450 million. -- said maintains buy rating on Nextel with 12-month price target of $35. Said increasing visibility of the company's international operations may provide a ''significant catalyst'' for shares over the next few months. biz.yahoo.com

To: lowbuy who wrote (5701)	4/16/1998 2:11:00 PM
From: Anthony Wong	Respond to of 10227

This article's dated yesterday, but still worth posting: April 15, 1998 3:11 PM CAPITAL MARKETS REPORT Nextel Comm. Reduced Cash Flow Losses Applauded By Analysts NEW YORK (Dow Jones)--Analysts' positive opinions about Nextel Communications Inc. were reinforced Wednesday by the release of figures showing a surge in subscribers and a narrower loss on cash for the first quarter. But, while the stock rallied on the news, the company's bonds were unchanged. Fixed-income market players said the report was already priced in to the debt. The McLean, Va. wireless services company released its first quarter earnings Wednesday, displaying a decrease in its first quarter losses on EBITDA or earnings before interest, taxes, depreciation and amortization to $105 million from $112 million. "The cash flow decrease was right in line with expectations," said Greg Froehlich, telecommunications analyst with Merrill Lynch's fixed income group. "We expect their EBITDA to finally turn positive at the end of the year," he added. The company's chairman and chief executive, Dan Akerson, attributed the improvement to subscriber additions, which increased by 370,800 to 1.64 million in the U.S. "Certainly their growth in subscribers is a positive sign," said Doug Bontemps, telecommunications analyst with Moody's Investor Services. Though Nextel's bonds didn't react, its stock gained 7/16 to 32 13/16 although it fell back later in the day. Nextel's 10.65% senior redeemable discount notes, due 2007, were unchanged at 67 1/8, according to a high-yield trader. He said the market had already priced in the results. Moody's had recently upgraded these notes to B2 and Standard & Poor's rates them at CCC+. Moody's Bontemps noted that though no upgrade is expected in the near-term, "it is growing very quickly and seems to be seeing success and their bad debt is more under control now than last year." -Pallavi Gogoi; 201 938 2122; Pallavi.Gogoi@cor.DowJones.com