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

To: Frederick Smart who wrote (6022)	5/9/1998 8:40:00 AM
From: Arnie Doolittle	Read Replies (1) \| Respond to of 10227

Fred, T has a history of cutting prices without reducing them below that of the competition. Like Clinton, T is the master of the high profile statement that seems to be right on but the devil is in the details. Also comparing T's adds with NXTL's adds is misleading, at best. A NXTL add is more valuable than a T add because of the arpu difference. No one talks about that but it's a reality. In the short run, NXTL's potential weak link lies with dual phones (analog-digital) because of the greater coverage of analog. It will be interesting to see what NXTL's response to that will be when the time comes. I've often heard talk about wireless service being paid only by the caller, instead of the current double billing. One could make the argument that is beginning to happen. How so? Consider the bundled minute pricing packages: It's a crack in the dam which says, "Hey, buy me and you get a bunch of free minutes." When that trickles down to the "Honey, bring home a loaf of bread" crowd, we'll see an explosion of customers added to wireless. We've already begun down the path that will lead to wireless becoming the 500 pound gorilla while hard wired systems will begin the slippery slope downward. At some point the Wall Street poopahs will see this too and wireless stocks will literally explode just as the internet stocks have exploded because analysts see future billion$ in $ale$ tran$acted over the internet. Arnie

To: Frederick Smart who wrote (6022)	5/9/1998 10:21:00 AM
From: Ken Benes	Respond to of 10227

Fred: We have a difference with investing stlyes, but we have much in common when viewing the society in which we live. To rid the airwaves of the Springers and company would be a worthy accomplishment. These purveyors of misery offer nothing of redeeming value and hold our society up for ridicule. The volunteerism you speak of will become more and more prevalent as the boomers begin to take their early retirement and redirect their energies to giving back some of what they have reaped. As far as the networking of nextel, I have some mixed feelings thru my own personal experiences. First, last year my company along with three others established our own network with nextel. The ability to direct connect with my subcontractors offered a dramatic increase in our productivity and along with the good economy, our business more than doubled with the help of nextel. Recently, we abandoned our own network to participate in a much larger network established by nextel. We were forced to join this network to avail ourselves of the new pricing plan, 89.95 for 700 cell time, unlimited direct connect. The new plan reduced our monthly charges by 50%. Unfortunately, the service in the new network is terrible, rarely can we make a complete conversation without losing service. This is happening thruout the NY area, and the complaints cannot be good for word of mouth. Clients who were intriqued with nextel, similar to ED, are opting for Sprint and some of the other PCS providers. Secondly, several weeks ago I mentioned that a friend of mine who worked with Morgan Stanley told me that MS had procuredured 200 phones. Last weekend I did the five borough bike tour with my friend and he told me that they were dissatisfied with the service and he also told me of a new technology by a Swedish company that he thought had great promise and MS was in the midst of installing on a preliminary basis. My friend is an electrical engineer in communications and plays and integral part in the MS network. The new technology is a hand held unit that offers a combination of portable phone and cell phone in one. While in the building should his extension ring, he can pick up with the hand held unit. Once he leaves the building, the unit automatically converts to cell with the same phone # and extension that he has in the building. If he goes from uptown to downtown, he catches all his call whether at his desk, in a taxi, or at a meeting. He is pretty excited about the system, and he claims MS is on the verge of abandoning the nextel system for this new system. This represents one company, but the technology may pose a threat to nextel's plan to move into the white collar market. Fred, you know as well as anyone that all TA does is measure investor sentiment by plotting it on a graph and incorporating some indicators based on price and volume. Several weeks ago, when nextel began its decline, I was worried that there was a dynamic occurring that was not obvious. The decline continued, and a distribution pattern is starting to emerge. What is the cause, a normal retracement, increase competition, a pause waiting to confirm that momentum continues in the face of increased competition. Possibly a combination of all these factors. Nevertheless, momentum as been lost and this loss of momentum makes nextel a bit more riskier in a very overvalued marked. I believe this loss of momentum precludes any dramatic moves by nextel in the near future that will cause the stock to make new highs. Stocks with leverage lead market declines. A wish you the best. Ken