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

To: John F. Dowd who wrote (9014)	4/7/1999 8:17:00 PM
From: SteveG	Respond to of 10227

from BTAB Fifer and Hines - Nextel HIGHLIGHTS: -- The ongoing saga/rumor/speculation of MCI WorldCom and Nextel Communications getting together once again surfaced in Tuesday's (6-April) Wall Street Journal. We spoke with Nextel and they neither confirmed or denied any discussions. Thus, we do not know but certainly would not be surprised. -- In our opinion, should MCI WorldCom choose to add a wireless strategy (a la AT&T, Sprint, et. al.) Nextel, with its national footprint and high- potential international operations, is an obvious choice. Other avenues would include GSM roll-up (VoiceStream, Aerial, Powertel, et. al.), resell of wireless (less likely), and build (doubtful). -- NET-NET: We would continue to be a buyer of NXTL shares. Very scarce asset. Underlying price objective is $48/share based on our discounted cash flow. Current 12-month price target of $44/share heavily discounts non-fully funded Nextel International operations. We believe that a private market transaction would be at higher prices. -- FOLLOW-UP: Don't forget about Clearnet. We believe that whoever possibly buys Nextel would be interested in Clearnet as well (same underlying technology on Clearnet-MiKe network). Our underlying price objective on CLNTF is US$28/share.