Subject: [NEXTEL-1] Breaker, breaker. This is Rubber Duck, over.

From: Marcel <[email-masked]>
Date: Sun, 20 Apr 2003 04:45:52 -0400

Nextel Communications

Breaker, breaker. This is Rubber Duck, over. Nextel Communication (NXTL) provides cell
phones that also work like CB radios. The so-called push-to-talk technology has helped
differentiate Nextel from competitors &#151; the company's average revenue per user, or
ARPU, totals $68 per month, compared with $58 on average for peers.

Fans of the stock point to its steady Ebitda growth, from $1.2 billion in 2000 to $1.8
billion in 2001, $3.1 billion in 2002, with $3.9 billion projected for 2003. It's current
EV/Ebitda of 6.5, compared with 6.7 for both Sprint PCS (PCS) and AT&T Wireless (AWE) and
8.4 for the S&P 500 puts the company firmly on our list. And Nextel's churn &#151; the
rate at which companies lose customers &#151; is the industry's lowest.

But others, including Jefferies analyst Ben Abramovitz, are cautious about the possibility
of competitors rolling out their own CB-like phones. "Nextel has been demonstrating
clearly improved operating performance over the last couple of quarters," says Abromovitz,
"[but] we believe investors are becoming more concerned over the potential decline in ARPU
from the customers the company is currently attracting, as well as the potential impact to
future growth if competitors can indeed introduce a comparable push-to-talk product this
year." (Abromovitz doesn't own shares of Nextel; Jefferies has no investment-anking
relationship with the company.)

One industry insider, at least, recently decided to take some
Nextel profits off of the table. Motorola (MOT) sold 25 million
shares on March 4 for $13.42 &#151; the stock is trading around
$12 now &#151; and used a hedge to lock in the price of another
25 million

http://www.thehawaiichannel.com/money/2118289/detail.html

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