Rural Cellular
Making its home in Minnesota and owning and operating cellular and digital phone service companies in thirteen states, the Rural Cellular Corporation is quickly making a name for itself. Sense its inception in 1990 Rural Cellular Corporation, or RCC, has become the ninth largest rural cellular company in the country. A rural cellular company is exactly what it sounds like. It has no holdings or contracts in major metropolitan areas, but instead it groups together small rural cellular carriers and providers into one large corporation. By starting in their home state of Minnesota, they have branched out to all sectors of the country, including Washington, Oregon, North and South Dakota, Nebraska, Mississippi, Alabama, New York, New Hampshire, Vermont, Massachusetts, and Maine. By gathering up small cellular companies in these areas, RCC has given itself a foothold in fast growing areas of the country. As they have grown in location, so have they grown in service and product they offer. They have just recently begun to offer digital phone service in some of their areas, while at the same time they have implemented paging and phone service packages. By packaging these together they offer the convenience of a mob
If this were not the case, why would a company that relies on costly expansion as their source of growth, give large dividends to Preferred stock holders, thus drying up any profit they might have turned, and putting themselves in the red. With the inception of mega-corporations (AT&T, Sprint, Verizon) starting to offer cellular and digital service, it will be very difficult for RCC to survive, when they are financially unable to compete, and they know this. In the first section of notes on page 23, paragraph two reads as follows: "Accordingly, we do not believe the discussion and analysis of our historical financial condition and results of operations set forth below are indicative nor should they be relied upon as an indicator of our future performance". 5 days are needed to turn inventory over. But another tell tale number regarding expansion is the Interest expense, and this number is concerning to me. Accompany these reports are notes from management and the accounting firm that explain in detail each category of the reports. This comment, in the management notes, ask you not to look at the facts and numbers from the previous years as an indicator of the future. ile phone with the practicality of a pager. As a whole, the annual report is very easy to follow and understand. So now a phone with an original value of $200. If investors did this, the stock market would be filled with Quepasa. 4million are customers as of the end of 1999. By relying primarily on purchasing existing contracts of small cellular companies and rolling them into the RCC, they are expanding their company, but are financially strangling themselves.
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Acceptance Essays
