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

To: John F. Dowd who wrote (6167)	5/16/1998 10:35:00 AM
From: Bernie Diamond	Read Replies (2) \| Respond to of 10227

John, my take to your questions/comments... <<If they don't do 400+ they are in trouble. In fact they have to keep up the 8% qrtr. to qrtr. sequential growth until they are able to make a bottom line.>>> I think it's great that Nextel is increasing its growth rate at the phenomenal rate it has, to date. Some of the reasons are: 1. new markets opening 2. acceptance and need by business of new technology (DC exclusive, and digital security) 3. competitive pricing plan and reduction of communications/office costs by users. 4. business/area networks 5. word-of-mouth endorsements ("Look what Nextel has - its great!"), and other reasons that have been discussed here. Just like the stockmarket, it won't always just go up (hard to believe -[ggg]). I don't believe that 8% growth in new adds/Q is essential, but the market may see it differently. What is essential, IMO, is continued growth and acceptance of the capabilities only Nextel has to offer. <<Did anyone ask any difficult questions? When do they estimate going cash pos. GSA rising faster than revenues. etc. These meetings are supposed to challenge management as they are the employees and shareholders are the owners. >> As I see it, challenging/confrontational/antagonistic questions (if that's what your asking) did not take place. On the contrary, mgmt was complemented on their extraordinary accomplishments, to date, and their initiatives and vision going forward - all of which will add tremendous value to the company. Challenging questions, in terms of concerns, were raised. FWIW, I raised the issue of complaints about deteriorating service and poor responses (in some instances) to customer complaints, that I've read on the internet. Understanding that everything you read on the internet is not in fact accurate, Akerson acknowledged the recognition of deteriorating service in some areas, and what was being done about it. The rate of increase in usage, and the realigning of frequencies were the causative factors for the most part. He would not accept the premise that in some cases (alleged on the internet) customers got very late responses to their problem, and in one case I read, no response. Having sensitized mgmt to these complaints, I'm sure its being discussed with regional presidents. As Akerson stated, "The worst is behind us." The growth and training of new employees to be responsive to customers is an important issue for all companies. I also raised the issue and concerns about Motorola being sole source and possibly being taken over. Many good questions/concerns were asked by a number of people. I feel that they were honestly and fully responded too, and that people were satisfied with the responses. Cash flow positive expected this year (national operation). Free cash flow (national and international) late 1999. Profitability, in sense of earnings (couldn't be specific) around 2000. <<Did any funds identify themselves and ask any tough questions? Did any brokerage houses do the same? >> No one identified themselves as such. Someone at SI posted that there was going to be an analyst meeting yesterday. I haven't heard anything about it, or if in fact it took place. Akerson did state the following: "I do think we are undervalued. We are doing everything we can to insure that people recognize the value. We're not high profilers like Sprint came out to bad mouth against AT&T. We're trying to manage for long-term value. Last couple of days doesn't mean much to me because we're in this for the long haul. You will see several new initiatives over the next several Q's and the next several years. I hope you'll see appreciation of value." I'm satisfied with management!!! Bernie