Nextel Communications (NXTL $19.20) is a high-ranked leader in the Telecom-Wireless Services group. The company is a provider of wireless communications services in the United States. The Company's service offerings include digital wireless service; Nextel Direct Connect, its long-range digital walkie-talkie service; wireless data, including e-mail and text messaging, and Nextel Online services, which provide wireless access to the Internet, an organization's internal databases and other applications. The Company's all-digital packet data network is based on Motorola, Inc.'s integrated digital enhanced network wireless technology.

Nextel stock attracted heavy buying interest in mid-June (see green circle and lower line), and since running up about 30% it has found persistent support near its 50-day moving average (the blue line). Note that NXTL gapped up on August 28th and blasted above that important short-term moving average. That puts it in position to challenge prior highs.  Even if it means waiting and paying a higher price, having the reassurance that heavy institutional buying demand is there is always a smart signal to wait for, so watch for a new high close above $20.05 (see top green line) at any time soon.  Such a technical breakout, particularly on high volume,  would very likely bring on more follow-through buying in the days and weeks to come.  On the downside, a failure to clear prior highs and attract heavier volume could result in a much longer period of consolidation. 

O'Neil's new 3rd edition of "How to Make Money in Stocks" says that with the CANSLIM method you can buy large stocks, but when all things are considered, a stock with a smaller supply is usually inclined to move more quickly in price that one with a large supply.  If there is any respectable CANSLIM type of growth stock worthy of mention with more than a billion shares outstanding, this is certainly one that might be wise to put under consideration.

Shares Outstanding - 1.028 Billion  | 50-Day Avg Vol - 18,760,900
Prior 4 Quarterly Earnings Comparisons vs Year Earlier: 
Sep '02 +$0.14 vs -$0.68
Dec '02  +0.21 vs -$2.22
Mar '03 +$0.20 vs -$0.35
Jun '03 +$0.27 vs -$0.05

Note: The company is showing profitable quarters versus losses in year earlier quarters, a big improvement following many losing years.

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