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

To: Linda Pearson who wrote (9169)	5/28/1999 9:58:00 AM
From: SteveG	Read Replies (1) \| Respond to of 10227

NXTL: Closes Microsoft Transactions Bankers Trust Research/BT Alex. Brown Research Jeffrey Hines,Bo Fifer May 27, 1999 ---------------------------------------------------------------------- NEXTEL COMMUNICATIONS INC. [NXTL] "STRONG BUY" Closes Microsoft Transaction ---------------------------------------------------------------------- Date: 05/27/1999 EPS 1998A 1999E 2000E Price: 34.63 1Q (1.53) (1.66)A (0.92) 52-Wk Range: 43 - 15 2Q (1.94) (1.37) (0.88) Ann Dividend: 0.0 3Q (1.56) (1.16) (0.80) Ann Div Yld: 0.00% 4Q (1.43) (1.06) (0.65) Mkt Cap (mm): 13,194 FY(Dec.) (6.46) (5.25) (3.25) 3-Yr Growth: FY P/EPS NM NM NM CY EPS (6.46) (5.25) (3.25) Est. Changed Yes CY P/EPS NM NM NM --------------------------------------------------------------------------- ---- HIGHLIGHTS: --Nextel announced Friday (28-May) that it had received $600 million from the previously announced transaction with Microsoft (announced 10-May). --Microsoft has received approximately 16.67 million shares of Nextel, which represent approximately 4.4% of the fully-diluted shares outstanding. --We would expect that this announcement will result in several Internet related events going forward, e.g., * Nextel should begin testing Nextel Online later this year which should enable Nextel subscribers to use their wireless phones (i1000plus from Motorola) to access information via the Internet/Intranets. * Microsoft Windows CE likely will ultimately find itself in the i1000plus, which today currently carry an Internet browser from Unwired Planet. --The net-net is that we expect Nextel to be the first wireless company in the U.S. to roll-out packet based wireless data services on a large scale to broad subscriber base. As such, we continue to see Nextel as operating at the head of the PCS wireless class, a class that Nextel has ranked #1 (based on our 5-metrics of value) in four the past five quarters. --Reiterate "strong buy" investment rating on NXTL. Based on our DCF our 12-month price objective is $51/share.