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

This of course is simply my thoughts and concerns, and they are not clearly answered in the report. When I stopped by the local RCC retailers were also unable to answer my questions concerning this issue.

All of the essential reports are clearly labeled and laid out in an easy to read form. Accompany these reports are notes from management and the accounting firm that explain in detail each category of the reports.

The annual report I received and analyzed is from 1999. When I requested the most current report, the 2000 was unavailable. Therefore, the numbers I relied on and cite throughout this analysis are one year old.

When RCC gave their IPO in 1996, $26 million was brought into the coffers, which was invested directly into the company's growth. By doing this, they have made it difficult to show a profit on paper. Although it does not state this in the reports, I see the Preferred stock agreement as follows. The first full year, 1997, a dividend will not be awarded, but every year after that, compensation must be given to Preferred stock owners. 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. Therefore, RCC must be under contract to pay out these large dividends, or they're a very generous company that is looking to fail.

financial condition and results of operations set forth below are indicative nor

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. Failure is almost certain for RCC. Most likely a buy out will come with one of the mega-corporations purchasing the service contracts and service areas held by RCC. By continuing to purchase more and more contract areas, RCC is making it more profitable for the shareholders in the end. Besides, the Zscore told me its true. With a score of .094 the Rural Cellular Corporation is prolonging a fate met by most companies like themselves. Like the jungle world, survival of the fittest is how business works, and by delving into their reports, the Rural Cellular Corporation is not fit.

Some common words found in the essay are:
Massachusetts Maine, Nextel Ericsson, POP RCC, Sprint Verizon, RCC IPO, Corporation RCC, Cellular Corporation, Failure RCC, , rural cellular, Besides Zscore, rural cellular corporation, customer base, cellular corporation, annual report, phone service, preferred stock, tell tale, cellular company, tell tale regarding, local rcc, digital phone service, cellular companies, tale regarding expansion, rural cellular company,
Approximate Word count = 1804
Approximate Pages = 7 (250 words per page double spaced)