Wireless names were the topic of conversation in the secondary market this week, with Nextel Communications leading the pack. "Strong results caused the market to tick up," one investor said, referring to Nextel. Indeed, the name rallied from the high 70s after announcing promising second quarter results on Tuesday. Some market players claimed that the paper traded as high as 86 after the news, but others said it peaked in the 85-85 1/2 range, trading into retail. The highest Street trade was 84 7/8. By Wednesday, Nextel had settled back to the 83-84 level. Calls to Paul Saleh, cfo, were referred to a spokeswoman, who did not return calls by press time.
Centennial Communications also got a boost last week, first off of Nextel's back and then from its own stronger quarterly results. Roughly $10 million was believed to have traded in the 66 1/2 - 67 1/2 context. Levels were recorded in the 68-69 range by midweek.Peter Chehayl, cfo, did not return calls by press time.
However, any uptick that American Cellular could have swiped from the positive wireless vibe was squashed by Standard and Poor's downgrade of its corporate credit rating. The rating was lowered after the company announced that it would not be in compliance with its total debt leverage ratio covenant for the second quarter. The name was believed to have traded around 67. Calls to Bruce Knooihuizen, cfo, were referred to a spokesman, who did not returned by press time.