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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: bananawind who wrote (334)	4/28/1999 12:01:00 PM
From: KaiserSosze	Respond to of 2737

Good point Jim. I asked about this, since they claim that the $265M they got in financing from QCOM should be gone in approximately 12 months due to their buildout plans. Their goal is to have each sub (Pegaso, Cricket, Chilestat) able to handle their own financing before those 12 months are over. This could include bank loans, high-yield debt, etc...! They would prefer to not issue shares (that was my inference, not a quote)! Also, a previous poster had mentioned they thought they might spin off Cricket, and I think that is an option as well. As I mentioned earlier, they really do seem to have a sound strategy in place. Best of luck.

To: bananawind who wrote (334)	4/28/1999 12:02:00 PM
From: Jeff Vayda	Read Replies (1) \| Respond to of 2737

Jim: Would that secondary offering not be a positive and (given a minimum support level) increase the value of 'original' shares? That is how I would look at it but I am not a professional money shuffler. Sprint is making great strides in coverage and customers but it is very expensive business and not making money yet. They will continue to have the stock price supported as long as they dont trip up and have the subscriber numbers fall. LWIN is going to be the same position. As long as they produce, people will overlook the cap ex it is going to take. It might take some time for the street to understand what LWIN is all about, but good results from Cricket will go along way towards that end. Long term if they execute the business plan, things will be good. But then again, you can say that for most business'. My vote is out. I am in favor of the concept. I also plan to increase my vote and buy more shares this summer. Darn thing got away from me earlier this year. :-( Jeff Vayda

To: bananawind who wrote (334)	4/28/1999 8:39:00 PM
From: JGoren	Read Replies (1) \| Respond to of 2737

I believe that you may be correct that LWIN may have to raise money for buildouts through either a private or public offering of new shares, even if it sells partnerships. It would increase the number of shares and shareholders, and take advantage of a good price in the market. If you look at Sprint, its price stayed pretty flat until it's buildout was well underway. Technically, IRRC, it's not a secondary offering; a "secondary" offering is when the company registers shares for existing shareholders (usually restricted stock) who want to sell to the public. As such no new shares become outstanding. Often, the secondary offering piggybacks on a primary offering. Company issues 10 million shares; existing holders sell an addition 1 million throught the same public offering. Oftentimes, those who buy in a private offering (e.g., banks, other financial institutions) negotiate a "piggyback" clause, which gives them the right to sell their restricted stock in the same offering if the company makes a subsequent registration.