Subject: [NEXTEL-1] Goldman Sachs downgraded Nextel on Thursday, citing an unattractive risk/reward situation based on expected negative news

From: Marcel <[email-masked]>
Date: Thu, 08 May 2003 12:52:15 -0400

Oppps............ In response to my downgrade comment one of the Goldman lurkers just sent
me this.
I stand corrected the Goldman's people said the already started Downgrading  Timmy's
Nextel.
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Nextel Falls on Goldman Downgrade
By Meredith Derby
Editorial Assistant
05/08/2003 10:58 AM EDT

The bad-headline risk is growing at Nextel (NXTL:NYSE - news - commentary - research -
analysis), an analyst warned.
Goldman Sachs downgraded Nextel on Thursday, citing an unattractive risk/reward situation
based on expected negative news in the next few months. Shares fell 6% to $12.99.

Goldman downgraded Nextel to underperform from in-line based on increasing uncertainty of
the company's presence in the spectrum swap and push-to-talk markets. "We believe the
market will increasingly focus on the imminence of push-to-talk competition in the
June/July time frame from both Verizon (VZ:NYSE - news - commentary - research -analysis)
and Sprint PCS (PCS:NYSE - news- commentary - research - analysis)," Goldman said in a
research note.

Nextel is in a bidding war for wireless bandwidth that involves swapping old spectrum with
the FCC in an effort to reduce interference on airwaves that are used by police and other
public safety groups. Goldman noted in its report that Motorola (MOT:NYSE - news -
commentary - research - analysis) on Wednesday submitted to the Federal Communications
Commission an alternative to Nextel's proposed swap,  which could delay the FCC's decision
on Nextel's proposal. The FCC can accept Nextel's spectrum swap proposal or delay making a
decision for as long as it wants, Goldman noted, adding that it believes a delay is
imminent. Goldman said it believes Nextel could fall below its $13 to $14 full value range
for a prolonged period until the uncertainty is resolved. "While the Motorola proposal
doesn't seem to answer all the issues concerning interference, at minimum, it would seem
to provide support for those at the FCC who would rather study the issue longer, than make
a decision sooner," Goldman said. Goldman forecast Nextel EPS of $1.05 for full-year 2003
and $1.07 for 2004. Analyst consensus is 91 cents a share in 2003 and $1.19 a share in
2004. The company lost 5 cents a share in 2002.

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