Subject: [NEXTEL-1] Nextel's Next Feat?

From: [email-masked]
Date: Fri, 29 Aug 2003 04:33:42 -0400

INSIDE WALL STREET 

Nextel's Next Feat? 

Although Nextel Communications (NXTL) has been a live-wire act -- 
rocketing from 6.70 a share on Sept. 3, 2002, to 17 on Aug. 27 -- 
the big U.S. wireless carrier is still the top stock to buy for some 
pros. "It could double in 18 to 24 months, based on the rapid 
earnings growth we see," says Graham Tanaka of Tanaka Capital 
Management, which owns shares. Its Tanaka Growth Fund is up 35% this 
year, vs. the Standard & Poor's 500-stock index' 14% gain. (Last 
Oct. 7, Nextel was featured here at 7.19.)  

An outfit that long lived on hope, Nextel is now a play on 
real "quality earnings," says Tanaka. It trades at just 12 times 
consensus 2004 estimates. Nextel caters to the business trade and 
high-end individual markets -- for its Direct Connect service that 
provides phone linkups at the push of a button. Not yet reflected in 
the price, says Tanaka, is the potential of Nextel's growing 
government business -- now less than 10% of sales. That could triple 
in a couple of years, he figures, as Nextel seeks more spectrum 
capacity. Also potential winners: the family and youth markets. 
These, plus new products, such as phones with access to Blackberry 
and Web data, should fuel growth, says Tanaka. Nextel added 591,000 
subscribers in the second quarter, making a base of 12 million, up 
from 10.6 million in 2002.

"For a stock in a struggling industry, Nextel has turned in results 
that have impressed the Street," says Charles Hill, research 
director at Thomson First Call. He notes that of 33 analysts, 19 
have "strong buy" or "buy" ratings. Only two rate it a "sell." 
Consensus earnings estimates are $1.08 a share for 2003 on sales of 
$10.2 billion, and $1.44 for 2004 on $11.4 billion. Analyst Eric 
Weinstein of Credit Suisse First Boston sees Nextel earning $1.19 in 
2003 and $1.66 in 2004.

http://www.businessweek.com/cgi-bin/register/archive.cgi?c=&y=03&w=36&h=b3848115_mz027.htm

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for Your HP, Epson, Canon or Lexmark
Printer at Myinks.com. Free s/h on orders $50 or more to the US & Canada. http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/l.m7sD/LIdGAA/qnsNAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/